NFT

What are NFTs?

First of all, what does NFT mean? NFT stands for Non-Fungible Token. To understand this, we need to understand what fungible tokens are, being a fungible value means that two tokens of the same currency are worth the same thing, for example if we have two 1€ coins they are each worth 1€, this also works in cryptocurrency where for 2 btc, each of these 2 btc will be worth about $49,000 (at the time of writing this on 8/29/2021). NFT's are just the opposite, they are unique tokens whose value is dictated by their rarity, it is impossible to have 2 same NFT. Thanks to the mechanisms of the blockchain, each token is associated with an identification number that serves as a certificate of authenticity.

A small example?

A very simple example can be seen as follows:

Let's imagine that I play an online game, for example World Of Warcraft. One day I get a great new sword (which is an NFT in this example) available in only 10 copies. From a technological point of view this sword will be unique, it will have a precise identification number and I will be its owner, I will be able to use it to play it or display it in all the cities I pass by. Let's imagine that one day I stop playing and I delete my account without exchanging my sword, there will be only 9 swords available in the game, not one more, not one less. Of course, if I want I can sell the sword for money in-game or for a currency but I will lose ownership of the item and the item and its certificate of authenticity will be transferred to the buyer. Nevertheless, there will always be only 10 copies of this item, not one more, not one less. Of course, there are many NFT, we can mention pictures, music pieces, or even virtual figurines, etc...