NFT
NFT stands for a non-fungible token
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In the past, items published online did not have any value as everyone had access to them.
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But with NFT, the Internet has found a new way to give every item available in the virtual world a unique identity.
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For instance, now you can buy an NFT for original artwork and 'own' it in the truest sense of the word. The item you have purchased as NFT will have its own unique identity.
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Reading this, you might be thinking how an NFT of an image has more value than a Copy & Paste image.
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To clarify this difference, have a look at this example. Real-World Asset Vs. Digital World
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If someone is selling you a Picasso painting, you need to confirm that it was painted by Picasso and not by a Picasso fan. How will you do that?
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By calling up an expert who has complete understanding of how Picasso painted. Another way of verifying the authenticity is by looking at Picasso's signature.
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But to verify an NFT, you don't have to call anyone. An NFT comes with a signature of its own.
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However, the signature, in this case, is a digital token that is saved in the Blockchain by thousands of computers.
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There is no way to replicate the unique ID and metadata associated with the token.
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So, although it is still possible (highly unlikely) to replicate Picasso's signature, it is impossible to duplicate a token stored in the blockchain.
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Once you buy an NFT, you own the original artwork in some form, e.g., you can buy a limited edition of an NFT that has its own selling value.
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On the other hand, when you copy & paste, you actually just copy an image, a video, or a poem.
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The 'copy' does not have any intrinsic value, but the NFT comes with an associated value that will surely rise when the price of the artwork increases.
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Explore Most Expensive NFTs of 2021 Part-1