𝗪𝗵𝗮𝘁 𝗔𝗿𝗲 𝗡𝗙𝗧𝘀 𝗮𝗻𝗱 𝗛𝗼𝘄 𝗗𝗼 𝗧𝗵𝗲𝘆 𝗪𝗼𝗿𝗸?

𝗜𝗻𝘁𝗿𝗼𝗱𝘂𝗰𝘁𝗶𝗼𝗻
Non-Fungible Tokens (NFTs) have transformed digital ownership, impacting art, gaming, and more. But what exactly are NFTs, and how do they work?

𝗪𝗵𝗮𝘁 𝗔𝗿𝗲 𝗡𝗙𝗧𝘀?

NFTs, or Non-Fungible Tokens, are unique digital assets verified using blockchain technology. Unlike cryptocurrencies like Bitcoin, which are fungible and interchangeable, NFTs are unique and cannot be exchanged on a one-to-one basis. This uniqueness gives NFTs their value, as each token represents a distinct item or piece of content.

𝗛𝗼𝘄 𝗗𝗼 𝗡𝗙𝗧𝘀 𝗪𝗼𝗿𝗸?

NFTs are mainly built on the Ethereum blockchain, but other blockchains like Binance Smart Chain and Flow are also used. Here’s how they work:

1. 𝐓𝐨𝐤𝐞𝐧 𝐂𝐫𝐞𝐚𝐭𝐢𝐨𝐧: NFTs are "minted" using smart contracts, which include details about the NFT, such as the creator, ownership history, and metadata.

2. 𝐒𝐦𝐚𝐫𝐭 𝐂𝐨𝐧𝐭𝐫𝐚𝐜𝐭𝐬: These self-executing contracts contain the terms of the agreement and are recorded on the blockchain, ensuring secure transfer of ownership.

3. 𝐁𝐥𝐨𝐜𝐤𝐜𝐡𝐚𝐢𝐧 𝐕𝐞𝐫𝐢𝐟𝐢𝐜𝐚𝐭𝐢𝐨𝐧: The blockchain records the NFT’s creation and transaction history, ensuring transparency and immutability.

4. 𝐎𝐰𝐧𝐞𝐫𝐬𝐡𝐢𝐩 𝐚𝐧𝐝 𝐏𝐫𝐨𝐯𝐞𝐧𝐚𝐧𝐜𝐞: The blockchain provides a verifiable record of ownership, crucial for determining an NFT’s value and authenticity.

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