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Digital art has been made a valuable collectible with non-fungible tokens (NFT). They solve the problems of duplication and provenance.
What is the difference between Fungible and Nonfungible assets?
- A fungible asset is something that can be interchanged easily like money. You can exchange a PS10 note with two PS5 notes and the same value.
- However, is a non-fungible asset which means that it has unique properties that cannot be combined with another asset. An example of a unique painting is Although you can take a photograph of the painting and buy a print, there will always be one original painting.
What are Non-Fungible Tokens (NFTs),?
- Non Fungible Tokens (NFTs) are unique cryptographic tokens that can only be reproduced on a blockchain.
- These are unique assets in the digital world. They can be purchased and sold just like other property pieces, but have no tangible form.
- Digital tokens Can be considered certificates of ownership for physical or virtual assets.
What are NFTs?
- Original works of art like paintings are rare because they are unique. Digital files, however, can be easily duplicated endlessly.
- Artwork can be "tokenized", which creates a digital certificate that can be purchased and sold.
- Like crypto-currency a record of who is the owner of what is kept on a shared ledger called the blockchain.
- Because the ledger is kept by thousands of computers all over the globe, it cannot be a forger.
- In the same way, NFTs may also include smart contracts that solve problems such as duplication and provenance.