What is an NFT?

Definition of NFTs (Non-Fungible Tokens)

NFTs are unique digital tokens recorded on a blockchain that represent ownership or proof of authenticity of a digital or physical item. Unlike cryptocurrencies like Bitcoin, which are fungible (interchangeable), each NFT is unique and non-interchangeable.

Technical Functioning of NFTs

An NFT is a smart contract that contains metadata and links to digital files (images, videos, music, etc.). It is typically based on standards such as ERC-721 or ERC-1155 on Ethereum, ensuring token uniqueness and traceability.

Utility and Use Cases of NFTs

NFTs enable certifying the ownership of digital artworks, collectibles, event tickets, virtual land in metaverses, and much more. They open new possibilities for artists, gamers, and content creators.

NFT Marketplaces and Platforms

Platforms such as OpenSea, Rarible, or NBA Top Shot allow buying, selling, and minting NFTs. These marketplaces facilitate the exchange and monetization of unique digital assets.

Challenges and Criticisms

NFTs spark debates about environmental impact, speculation, and copyright issues. The durability of NFTs also depends on the security of the blockchains and platforms that host them.

How to Acquire an NFT?

To purchase an NFT, you need a compatible wallet, usually Ethereum, and cryptocurrency. Then, simply connect to a marketplace, select the desired item, and complete the transaction by paying the associated gas fees.