Hello Steemian

Greetings to you my dear friend. Today I welcome you to my post. In this post I have discussed about NFT according to the questions that was asked in Steemit Cryptoacademy Contest S2W4. Let's get started to the discussion.

Using your own words to define non-fungible tokens: NFT, and to show the difference between fungible and non-fungible tokens.

According to my own understanding of Non-fungible tokens it is a token that is very unique and cannot be exchanged for others. Non-fungible tokens is relative a new Innovation in the blockchain industry that is use to keep a track of an assets that is own by someone.

This is the reason why I define Non-fungible tokens as something that is very unique. However, in a nutshell, Non-fungible tokens is also describe as NFT in the blockchain industry as a digital asset that represents real world items such as music, memes, games, artwork, videos and also any items that has value which can be bought and sold online.

However, the word fungible and non-fungible tokens are words that are use interchangeably in the world of cryptocurrency without knowing that the both words are different. At this point, let's take a quick look at the difference between the two words.

Difference between fungible and non-fungible tokens.

There are so many difference between fungible and non-fungible tokens which i have discussed few of them and draft out they main differences in a tabular form.

Fungible means the property of a commodity that can be interchangeable with another asset that has the same value. While non-fungible tokens is the uniqueness of the property (asset).

Fungible makes uses of ERC20 standard which is the number Ethereum tokens that is similar to Bitcoin and Bitcoin cash which is seen as the most significant in the blockchain industry. While, non-fungible tokens makes uses of ERC721 standard which is on Ethereum that allows every developers to tokenize ownership of any transfer asset.

Fungible tokens has its own blockchain. Whereas, non-fungible tokens is built on another blockchain.

Fungible tokens is basically for stored of data that authorize the uniqueness of digital asset and it's divisible. While, non-fungible tokens cannot be exchanged for another assets and it's non-divisible asset.

Let's take a looks at them in a tabular form below.

S/N	main point	Fungible	Non-fungible
1	Property	Divisible	Non-divisible
2	Aim in real world	payment system	intellectual property (artwork,gaming, videos etc)
3	Standard	Built on its own blockchain technology	Built on another blockchain technology
4	Tokens exampe	ERC20, Bitcoin, Bitcoin cash, Litecoin etc	ERC721

Are NFTs interchangeable? What are the differences between an NFT and other currencies? Is there an NFT marketplace? And how to invest in NFTs?

No NFTs are not interchangeable. The reason why there is scarcity in the digital world, it's because NFTs are not interchangeable with each other. Fiat currency are fungible and it's interchangeable and it's the reason why it is known as fungibility, meaning the property of an asset whose single unit are interchangeable from each other asset.

Differences between and NFT and other currencies

The truth is that NFTs share some similarities with other currencies and the main differences here is that other currencies are determine by their nature.

Just as the name implies NFTs, are not equal to another NFT. Each NFT has its own unique and it is value differently based on their demand and value. Whereas for other currencies like Bitcoin for example, everyone knows that one Bitcoin is equals to another Bitcoin.

NFTs are not meant to change the world of finance instead it is meant for digital asset that represents real world. Other currencies on the other hand are meant to change the world of finance and allow everyone to have power of his/her fund.

NFT marketplace

There are several marketplace in NFT sales and some of this marketplace are mentioned below;

• OpenSea: This is the largest martkeplace in NFT sales than others.

• Axie Marketplace: This is the second largest marketplace in NFT sales.

• Larva Labs/CryptoPunks: Is also a marketplace for NFT and their are best known for Cryptopunks and NFT project.

• Nifty Gateway, Foundation, SuperRare etc are also NFT marketplace.

How to invest in NFTs

Investing in NFTs is the same way that you have been investing in other cryptocurrencies. However, in my own opinion, I will say that the best way to invest in NFTs is to follow the three approaches below;

Research on the Available NFTs: Research is the first thing that you should do if you want to invest on NFTs. By researching you will get to know the best NFTs to invest on.

Select an exchange or brokerage to buy crypto:
After making your research your next step should be buying of cryptocurrency so you can get NFT. Almost all NFTs are purchased using Ethereum, which means you need to first buy Ethereum from a brokerage or exchange first. You can buy your Ethereum from popular exchanges such as; Binance, Gemini, Coinbase etc.

Chose a martkeplace to buy your NFT:
As I have earlier stated there are several martkeplace in NFTs sale, you can select your choice out of the any of them and get yourself registered and connect your crypto wallet such as MetaMask wallet, Coinbase etc and purchase your NFT. The best marketplace are; OpenSea, Axie Marketplace,Nifty Gateway and Larva Labs/CryptoPunks.

How to create a new NFT and is it possible to have an NFT stolen? And why use a distributed file system like IPFS in this area?

In order to create a new NFT you will need to first create a crypto wallet with MetaMask. However, in this post I have discussed how NFT can be created practically.

Step:1 Create a crypto wallet with MetaMask.

• Install MetaMask chrome extension by clicking on get started.

• Click on create wallet

• Input your seed phrase, click on agree and then click on.
  Next to get your wallet completed.

Inmy case I have already installed MetaMask extension.

Now in this post I will be using OpenSea.

Step:2 Go to OpenSea click on Create or wallet option so you can be taking to where you will select your desire wallet.

Step:3 At the Wallet option you will see different Wallet select your prefer wallet example MetaMask is what am using.

Step:4 After selecting your prefer wallet. Input your password click on Unlock and instantly, your account will be created.

Step:5 Go to account page and set up your account by updating your profile After you have set up your account click on Create.

Note: On the create page, upload your digital art (NFT) and give it a name and a short description.

Step:7 After you have created your art, add it to your collection and then select on either Ethereum or Polygon Network and click on Create and complete the captcha after which your NFT will become minted.

Congratulations!.

Looking at whether NFT can be stolen. The answer to this question is yes NFT can be stolen if another person get to hold your wallet seed phrase or look for another alternative of accessing your wallet, that is when your NFT can be stolen.

The reason why IPFS file is been use in the area of NFT is that IPFS file allows users to store and retrieve their content using "fingerprint" that belongs to them. The name of this content is known as "cryptographic hash called (CID).

By making use of IPFS file cryptographic hash in an NFT, the NFT will reference the data by itself instead of making use of HTTP. In a nutshell, fingerprint is the reason as to why IPFS file is used in NFT.

How are NFTs used in art, video games and collectible card games? And how are NFTs revolutionizing property titles?

NFT are used in art, video games and collectible card games, regardless of where it's used it is still refer to as Non-fungible Token for digital asset. NFT are used as a means to certify the ownership of a digital good (asset) that are made in such a limited quantity.

The thing is that, when you own an NFT for a certain digital asset, it simply means that you alone own the certified token of the digital assets on a blockchain or digital ledger. The typical exampe of NFT is the real world asset that each of one of us own. However, the main used of NFT in art, video games and collectible is for people to sell their digital art online and also to promote a fair payments systems for our musicians and artists.

NFTs revolutionizing property titles

NFTs revolutionizing property titles is one of the powerful means through which NFTs can be Identify. NFTs revolutionizing property titles is what give a users ownership of his/her digital items (i.e sperating one items from another user items).

With NFTs revolutionizing property titles each artwork whether music, video gaming, pictures etc must have their own unique Identify that is attach to it so as to separate them from other NFTs. It is through the NFTs revolutionizing property titles that everyone can be able to identify his/her artwork and helps to know the artwork that are sold or bought in the NFTs marketplace.

How are NFTs regulated? And what are the solutions to the limits of NFT development?

Currently, NFTs are not regulated. However some steps has been taken in respect of some certain cryptoassets which NFT is also included which the world is expected to see the registration of cryptoassets any moment in time.

One of the issues that is confronting NFTs regulation is that regulatory body are finding it difficult to differentiate between NFTs, Stablecoins and cryptocurrency. What regulatory body are after is a rules that will regulate these three types of assets that is in the blockchain industry.

However, there are some cases that require NFTs not to be regulated for once. For example, some NFTs stands as a trading cards which means if there are regulated is just like putting a total stop in playing cards.

The solutions to the limits of NFT development

Some of the solutions to the limit of NFT development are listed below.

• There should be a standard for regulating NFT

• There should be a means by which free NFT can be created

• More wallet connection should be added

• More NFT marketplace should be developed

• Means of Identity should be included to improve ownership of unique digital asset.

Conclusion:

Today NFTs is fast rising and it's gaining more popularity in the world. This means that as an NFT creator you can possibly make a lot of money from your artwork.

Although, before going into the world of NFTs, you should have it in mind that it's not all NFTs that will sell and you should also know that there is a fees that is associated with minting and selling of Non-fungible tokens (NFTs).

Thank you so much my dear friend, for your time here. In this contest, I am inviting @simonnwigwe, @preye2 and @ollabillions to also join me and participate.