What Are NFT'S ? [ 3 Points & 2 Min Read]
NFTs stand for Non-Fungible Tokens, which can be interpreted as tokens which are NOT FUNGIBLE in nature. (LOL). Ok, besides this obvious definition, tokens which can not be replicated/copied once coded are called as Non-Fungible Tokens. So what does this means?
NFTs represents a certificate of authenticity / ownership of any type of an digital asset in existence. There will ever be only one unique asset ever in existence and hence will have value associated with it. Think of it as Monalisa, of which there exist only true 1 copy of it and that true copy will only have real value.
The types of digital asset of which there can be NFTs are basically infinite. There are NFTs of images, videos, GIFs, games, virtual lands, music, letters etc. You can have a physical asset linked with the digital copy of that asset which is being sold as NFT. For example, you can have an NFT of a digital copy of a letter, and as a investors buys it, the user will get the NFT certifying the ownership of the digital as well as physical copy of that letter.
What about screen shot debate? Well you can also have infinite number of copies of any physical asset like a painting, picture etc, but these copies never have values close to the value of the original painting. The reason is that there exist only one original one. Similarly, an NFT act as a proof stating that this is the original copy and hence it has value.