What is an NFT

An NFT (NON-Fungible Token) is a “one-of-a-kind” digital asset that can be traded like any other asset. They are the “new thing” in the collectable’s genre for a digital world.

If you ever bought Art, Football Stickers, Magic the Gathering or Pokémon cards in the past you understand how collectables work in general this is just a digital version of them.

What is a Blockchain

A Blockchain is a growing list of records, called blocks, that are linked together using cryptography.  Each block has a detail of the previous block, a timestamp, and transaction data. The timestamp proves that the transaction data existed when the block was published. As blocks each contain information about the block before it, they form a chain, with each additional block reinforcing the ones before it. Therefore, blockchains are resistant to modification of their data because once recorded, the data in any given block cannot be altered retroactively without altering all subsequent blocks.

Why are NFT’s in a blockchain

Because a Blockchain is a record of who owns what asset on a shared ledger and is maintained by thousands of computers around the world, this means that the record cannot be forged and so increases security for ownership of the digital asset. So as far as NFT’s are concerned it protects your ownership of the unique digital asset provided within the NFT.

Why purchase an NFT

An NFT is a one off never to be reproduced asset, so as the owner you will be the only person to own this one-of-a-kind item. Someone else may make copies of the token but only one person is the original owner, the best way to explain this is that if you own the original Mona Lisa its priceless whereas a copy is worth considerably less or worthless.

How can I purchase an NFT

NFT’s can be purchased usually with cryptocurrency on all the major crypto currency platforms, there are also many trading sites for NFT’s available.

How do I maintain control of my NFT

Its as simple as it sounds the Blockchain that it is set up on creates a digital record or ledger of ownership and this is then distributed throughout the world to maintain security of ownership.

How can NFTs make Money

They can appreciate in value as they become sought after when others want to own the original digital asset and also can be used in games (for some gaming type NFT’s) that allow you to participate in competitions to ether earn crypto currency or further NFT’s.

By Marty

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