NFT (non-fungible token) is a unique non-fungible digital key based on cryptocurrency. NFT cannot be destroyed or replaced with another such token. It is a kind of certificate of the uniqueness of any digital object (music, image, 3D-model, text, game object, etc.) which confirms that a particular user has it.
NFT essence consists in registering a certain ownership right to a specific virtual object in the blockchain. Owner information cannot be replaced or deleted.
In other words, it is like buying an expensive painting. That is, it belongs to you, but at the same time, it can be exhibited in some famous gallery for everyone to see.
The first experiments with NFT technology began in 2013-2014 in the Bitcoin scripting language. In 2017, a computer algorithm for creating, controlling and providing information about the ownership of something was created on the Ethereum blockchain.
The first sale of a virtual object using NFT
Already in February 2021, the digital work Daily: The First 5000 Days by American artist Mike Winkelmann (Beeple) was first exhibited at Christie’s New York auction and sold on March 11, 2021, for a record $69.34 million in Ethereum cryptocurrency.
A person who purchased a digital object based on NFT received not only the image itself but also a unique token that contains the digital signature of the artist, the time of the creation of the artwork, records of all previous sales and owners and other important information. As we noticed NFT can be purchased with cryptocurrency, e.g. ETH to BTC exchange which you can easily find on SimpleSwap.
The future of NFT
NFT is increasingly being used to distribute digital collectibles so mostly avid collectors are interested in that token. These can be unique videos of sports matches or films, audio recordings of famous artists, digitized art, popular memes and even messages from social networks.
Nobody knows for sure but tomorrow NTF may become an everyday reality in our life.