What is NFT, What Does NFT Stand for?

NFT is a term that we come across in every corner of the internet recently. Moreover, it has probably been familiar to you that people spent millions of dollars on these NFTs. So it’s possible that you might wonder what NFT is, what it does, and the reasons behind all this madness. This is exactly why we have prepared a guide for you that explains all the details on the subject without getting confused.

An artwork sold by using NFT - What is NFT

NFT literally means an immutable token. Unlike digital currencies, it has different features. The most fundamental of these is that they are indivisible, indestructible and verifiable. NFT also stands out at the point of passive income. If a user creates his / her artwork with an immutable token, it creates passive income for themselves. 

Non-fungible Tokens (NFT) are digital mirrors of collectable items in the physical world. It can be a non-exchangeable token for any player card, shoe or item. These tokens, unlike cryptocurrencies, cannot be exchanged with each other because each immutable token is different, unlike digital currencies.

So what is NFT and what does NFT mean? Here is detailed information about NFT, which means a non-fungible token.

What are these NFTs for?

NFT is a term that we come across in every corner of the internet recently. Moreover, it has probably been stolen in your ear that people spent millions of dollars on these NFTs. So it is quite possible to wonder what NFT is, what it does, and the reasons behind all this madness. This is exactly why we have prepared a guide for you that explains all the details on the subject without getting confused.

Non-fungible tokens are specially designed so that they can be easily distinguished from each other and verified. These digital assets, usually created on the Ethereum infrastructure, are created according to the standards of ERC-721 and ERC-1155 tokens. In addition to the Ethereum infrastructure, Eos, Neo and Tron developers have also published their own token standards to encourage NFT formation.

What is NFT? Is it a bubble or will it really be permanent in our lives?

Let’s start with the meaning of the word NFT first. In fact, NFT is an acronym for ‘Non-Fungible Token’. So, we can call it a crypto asset or money that you cannot trade/convert. Let’s explain this situation immediately with an example. For example, imagine you have a $20 bill. You can get this for two 10’s in any grocery store (theoretically, at least, you can come across grocery store scabies) Or let’s give a more recent example. Imagine you have a certain amount of Bitcoin.

It is possible, as you know, to trade it for another cryptocurrency. The assets you can trade like this are called the ‘Fungible currency. Here, our NFT is the exact opposite of that: namely, unconvertible crypto asset/value. We explained what NFT is, let’s examine the next briefly and item by item.

NFTs are located on the blockchain, just like other crypto units. In other words, we can say that they are purely digital assets. In addition to this, you may notice that we haven’t described NFTs as a complete currency since the beginning of our article. Naturally, “So what are these NFTs for?” The question may be on your mind right now. So let’s answer that right away. Just as Bitcoin or other cryptocurrencies have a currency, NFTs have a counterpart as an original photo, art form, or other intellectual property.

In practice, it works like this: When you buy an NFT, you acquire a digital art form (painting, song, video, etc. whatever you can think of) that nobody else is. Or, with the definition of crypto assets expert Dona Redel, “When you buy NFT, you can picture yourself, etc.” you might think you have an original code that expresses them as art forms ”. In short, we can summarize the event as a digital art special for you.

How are NFTs used in real life, what are their examples?

NFT instances are indeed unlimited. However, perhaps one of the most striking of these is the ‘NBA Top Shot’. NBA Top Shot is a system where the legendary moments and matches of famous players of the league are sold as NFT. For example, recently the image of a LeBron James smack was sold for 208 thousand US dollars. Of course, it is also possible to watch this image on Youtube without paying a penny. However, as we said, the whole thing is that NFTs come with a unique code and are unique.

Another famous NFT example is Jack Dorsey’s first Tweet. Dorsey, the founder and CEO of Twitter, released the first Tweet he posted on the platform as NFT. The latest offer is astounding: $2.5 million to the full. In addition to these, we can say that the Kings Of Leon group released their new album in the form of NFT, Grimes sold hundreds of artworks worth 6 million USD and the cat visual animation you see above was sold for 590 thousand USD.

Where to buy NFT?

First of all, let’s point out that NFT trading is usually done in cryptocurrencies. So, if you want to buy NFT, you must have some cryptocurrency. After this step, Rarible; Known Origin; or NFT markets such as Open Sea.

Does NFTs have a future or will it die out?

This is of course a difficult question to answer. However, considering the crazy wages we have mentioned above and the momentum gained by technology, it is highly probable that NFTs will take place in our lives in the future. While it may seem absurd at first that people pay such high amounts for what they can access for free online, there is actually a very established habit behind it: we value more for the less. In other words, the cornerstone of the economy: supply and demand. Considering the NFT creators encrypt their products with original or rare codes, in fact, the incident is no different than the rare football stickers or cards we pursued as a child. When we look at the whole subject from this perspective, it is not an exaggeration to say that NFTs are permanent in our lives.

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