What is NFT?
NFT stands for “Non-Fungible Token” or “Non-Fungible Token ” . A Token is a digital representation of something that has economic value that can be stored and transferred electronically. In economics, the term “Non-Fungible” refers to something that has unique properties and therefore cannot be exchanged .
For this reason, NFTs are proprietary cryptographic digital assets . These inimitable digital tokens were born in the year 2017 and can be understood as verifiable proofs of ownership and authenticity of virtual or physical assets. They are unique, indivisible and function as a whole. NFTs cannot be modified, spent or exchanged for others that have the same value because there is no equal or equivalent to another , as if it were a work of art.
A Non-Fungible Token Swap Platform Development can represent all kinds of assets from the physical world, such as a painting, and also from the digital world: an image, a video, a meme, a tweet, an audio… Currently supported formats are JPG, PNG, GIF , PDF, MP4, MP3, MPEG, AVI, WAV and SVG.
How NFTs work
NFTs work using Blockchain technology In a few words and explained very simply, Blockchainx technology is a large decentralized database , maintained by hundreds of users around the world, which records and performs all kinds of transactions. This system is based on a chain of blocks linked using cryptography, which prevents NFTs from being hacked or counterfeited and at the same time allows their creation, purchase and sale.
Ethereum is the most widely used blockchain in the NFT world.
Through this technology, which is the same as that used in the case of cryptocurrencies, each NFT is assigned a series of metadata that works as a digital certificate of authenticity. This metadata cannot be modified and it contains the starting value, the author and all the transactions that have been made with a specific NFT since it was created and tokenized. In this way it is possible to know at all times who, to whom, where and for when it has been sold.
The software that verifies ownership and handles transfers is called “Smart Contracts”. Smart contracts can perform other functionalities, such as securing the NFT creator or artist a portion of the profits from future NFT sales.
Smart Contracts: The code snippets behind NFTs
As we have already said, almost anything has the potential to be tokenized and become an NFT, that is, a database. This is possible thanks to the “Smart Contracts” or Intelligent Contracts , a programming within the blockchain that allows the creation of special tokens making all the important information of a transaction be stored in the network. It also allows us to access and interact with it whenever we want (always without being modified).
The creator of the NFT is the one who defines what it represents and what rights it grants. For example, the property rights are acquired by whoever buys the content, but the copyright will continue to belong to the creator of the work. The code in which these tokens are integrated is what guarantees the immutability of their property rights and authenticity.
The step by step to create your own NFT
– STEP 1: connect your wallet with the page where the token creation will take place.
– STEP 2: create a collection. Each NFT must be within a collection, even if it is only one. At this point the blockchain in which you are going to create it is also selected.
– STEP 3: add the NFT to the created collection. The information entered cannot be modified later (NFTs are immutable). It consists of uploading the file in the corresponding format, naming it and completing all the information and settings requested by the form.
There are 3 sales formats:
direct sale. The final price is fixed.
auction. Minimum sale price and time is set.
Bundle. Group sale of more than one NFT.
These are the key aspects to take into account when buying an NFT : it is necessary to know in advance in which marketplace the asset you are interested in buying is sold, as well as in what currency and what is the type of sale.