What is an NFT? Meaning, creation and Co.

NFT is now a common term that many people have probably heard. But very few really know what it is.

  • what is a Non-fungible tokens?
  • What does an NFT look like?
  • Where can you get an NFT to buy?

In this article we give you all the information you need sense, creation, purchase and more info on the digital assets abstract.

What is an NFT?

To understand what a NFT that is, a few terms need to be explained first. Starting with the term tokens (German token). A token is a digitized form of a asset. This means that the token can have a certain value or a certain function. A token can fungiblewhat type of interchangeable stands, or not fungiblewhat type of not replaceable stand, be. If a token is non-fungible, it means that it unique and repeatedly does not exist. This property allows the digital asset cannot be exchanged for each other.

In order to make this property understandable, one can imagine a fungible tokens like a 10 euro note. A 10 euro note can be exchanged for another 10 euro note exchange because there are several with the same value. A non-fungible tokens on the other hand, you can look more like a piece of art or one The painting imagine, because an array is usually always unique and cannot be exchanged one by one for another. NFT are so to speak non-tradable digital assetswhich one to feel like digital artwork can imagine.

Non-fungible tokens: what does an NFT look like?

In theory, an NFT can represent anything. A designa Video clip, digital works or real estate may exist as non-fungible tokens. The only requirement for an NFT is that it contain information that uniqueness can confirm and prove. This means that the respective owners can be traced.

Non-fungible tokens: how to own an NFT?

A non-fungible token is based as Cryptocurrencies on a blockchainprogramming. A blockchain represents a decentralized database and exposes himself information blocks whole. These blocks are, hence their name, as individual members a Chain aligned. Each block of information contains, on the one hand, certain data and, on the other hand, the hash value of the previous block. The hash value is like a digital fingerprint, as it is always unique and serves to identify the respective block. Since the blocks of information, in addition to their hash value, also have that of the previous block, a hash is created Chain. The chain, in turn, is based on a so-called peer-to-peer network.

The peer-to-peer network consists of several computers, each of which forms a complete whole Copy have the blockchain. In order to get disinformation into the chain, the same thing would have to be added to all copies, on all computers in that network, which is nearly impossible. Due to the structure of the blockchain, it is considered to be one of the safest ways to store data and information. The data contained in an information block can, for example, transaction details of the NFT. In this example would be in the transaction block seller, Buyer and the total transactions checked in.

Since an NFT is based on a blockchain, one can the possession very well documented and understood. A digital artwork can of course always be sent by Screenshot or Copy be replicated, but you can think of it like taking a picture of the Mona Lisa painting in the Louvre. The painting itself does not belong to you because of the image, art print or fake. So the only difference between a painting by Monet, Picasso or van Gogh and an NFT is that you can touch or hang a physical painting. A Non-fungible tokens therefore consists exclusively of digital world.

Non-fungible tokens: why NFTs are all the rage

For most people, NFTs are certainly incomprehensible and useless. Of infatuation to digital assets will probably die from the hype Cryptocurrencies How? ‘Or’ What ether or Bitcoin and the metaverse. The corona pandemic is most likely also a reason for the great interest. Due to the pandemic, on the one hand, there are many Artists strongly oriented towards digital means to generate sales and, on the other hand, many people and also potential buyers of NFT are increasingly in the immersed digital world.

Non-fungible tokens: where to buy an NFT?

NFTs are based on a wide variety digital markets exchanged and sold. Among the marketplaces are OpenSea, Rare and Cashable the biggest and most famous. To buy one NFT in a market are mostly Cryptocurrencies the only acceptable means of payment. Additionally, most NFTs are currently based on the Ethereum blockchain. To buy such an NFT, you need the corresponding cryptocurrency ether.

Non-Fungible Token: How to create an NFT?

Creating an NFT is not a big deal these days. You can easily get one Marketplace for NFTsFor example OpenSeaunder the function “Create‘ create a fully functional NFT. All you need is one case in the adapted format. In most cases, you can get non-fungible tokens from PNG, GIF, WEBP, MP4 or MP3 files create. Once the corresponding file is uploaded, it will be automatically converted into a file. NFT converted. About the market the NFT can then also directly resold will be. The only thing to keep in mind is that to create and sell NFTs digital wallet necessary is.

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