What are NFTs? Explained with an Example.

NFTs are cryptographic assets on a blockchain, they come with unique ID codes and metadata.

While an Ethereum coin can be exchanged for another Ethereum coin.  An NFT does not allow this type of transaction. 

The NFT remains attached to a specific digital asset, & it is entirely irreplaceable.

In case you want more clarification about what is an NFT, then the example mentioned below will make it clear to you:

The creation of work by an artist is called minting.

If an artist has painted a masterpiece, that piece of art will be considered the original.

The NFT created for this work will be regarded as the original NFT.

The original NFT of the artwork will be saved in the blockchain, which means it cannot be deleted or manipulated in any way, shape, or form.

If someone reproduces the same artwork at a later date, then it will be called a copy. However, the NFT of the copy will not hold the same value as that of the NFT of the original work.

Furthermore, there is absolutely no risk of fraud as each NFT has its unique signature ownership.

Pro Advice: Don't buy NFTs just because everyone is buying them. Only buy NFTs if you understand the goods being sold and use them.

Disclaimer: Cryptogurukul has no relationship to these projects, and there is no endorsement or investment advise. Please seek professional advice before taking financial risks.