NFT stands for Non-Fungible Token, a unique digital asset, that only one person can own. An NFT can be anything digital, such as a photograph, a painting, a drawing or even music. Each NFT has an unrepeatable identification code, that can’t be copied or falsified thanks to blockchain technology. With this personalized identifier on the blockchain, you become the sole owner of this unique piece of art.
Cryptocurrencies such as Bitcoin or Ethereum are fungible tokens, which means you can trade one for another one and you will have the exact same thing, whereas NFT’s are one of a kind, like a misprinted baseball card or the Mona Lisa.
How does a blockchain make sure that the information on it can not be falsified?
Think of a blockchain as a giant online logbook or a ledger, as it provides a place to put information. Anyone can add information, but no-one can change it and it isn’t controlled by a single person or entity. Everyone on the blockchain network has a part of the ledger and their ledger has to make sense with everyone’s else’s ledger. A blockchain is a chain of blocks online and if you add block C with new information it has to correspond correctly to block A and B that went before it, and the information stored on blocks A and B can’t be different all of a sudden in block C. Block C will say that Block A is the first block and block B is the second block and so on. So it’s basically a chain of blocks that point back to each other. Once a block is made and accepted on the chain, it can’t be removed.
This means that each NFT on the blockchain is unique and it’s proof of ownership cannot be falsified. Also anyone can see who made and minted the NFT and everyone will know the artist. The possibilities of the digital art you put on the blockchain are limited only by your imagination.
