What Is NFT? Cryptocurrencies That Is Trending Nowadays

What is NFT and its short explanation (Economic Times)

JAKARTA - NFT stands for Non-Fungible Token, or tokens that cannot be replaced. This cryptocurrency uses blockchain technology like Bitcoin, but it's different.

If Bitcoin is like a coin, then an NFT is like a digital certificate associated with a unique digital asset. Having an NFT is not the same as owning physical goods, users can only own the NFT through a digital ownership record of physical assets or goods as reported by Slashgear.

So, this NFT is like a certificate that only represents ownership of tangible and intangible goods. NFTs are quite different from other cryptocurrencies even though they both use blockchain technology.

Fungible Token and Non-Fungible Token

Fungible means 'non-exchangeable'. Bitcoin cannot be replaced with other physical or digital assets, so Bitcoin is a fungible token. Therefore the owner can have a digital wallet that contains a certain amount of Bitcoin. However, this cannot apply to NFTs because they are unique.

Unlike the real world, each item has its own replica, such as paintings, pictures, songs, and so on. This makes some people unable to distinguish between original and duplicated works. So with the presence of NFT, these various assets can be assessed for their authenticity even though their imitation works are circulating on the internet.

This makes NFTs have different values and are sold at different prices. The value of NFT assets cannot be exchanged or equated with other cryptocurrency assets.

For example, if a house is priced at IDR 500 million, then the value of the house is equivalent to USD 34.700. It could also be equivalent to 18.34 Ethereum based on the exchange rate per coin of IDR 27 million. So an NFT asset with the same price, namely IDR 500 million, cannot be compared to the house. This is what makes the selling price of the NFT vary because it depends on the seller himself.

"We have a lot of digital assets, we don't really own them", said OpenSea, the developer of the NFT, on its official website.

This applies to various digital products today, such as songs, digital films, games, e-books, and so on. However, we don't really own these products.

Any digital product that has ever been purchased is only available to the buyer as long as the seller agrees to allow the buyer to store it. Instead of "owning" something like a buyer has a physical product that has been purchased from a store, buying a digital product can only have a digital proprietary certificate.

How to Buy or Sell an NFT

Users can log into OpenSea.io, then click the account icon in the upper right corner, and then log in. Previously, users had to set up an Ethereum wallet with MetaMask first. So after that, the user will be directed to trade.

With NFT, users will receive individual codes for certain assets. This NFT code includes property rights, transfers, access controls, and rules for display. This is a brief explanation of what NFT is.