NFTs use blockchain technology to assist creators to authenticate ownership

• Author: Quirky NFT
• Date: 20 February 2022
• 0
• Category: Non-Fungible Tokens (NFT)

In this brief post we explain what Non-Fungible Tokens (NFTs) are, very briefly.

NFTs have fast become popular, sometimes fetching tens of millions of US Dollars, but why?

Simply put, this is because non-fungible tokens are the newest solution to a very old problem. Digital information (or assets) are easily replicated in the online world. For example, your photos can be copied and then pasted within just a few clicks and NFTs solve the problem behind authenticity and original ownership, just as you find in the music industry with people sharing music across the internet.

Non-fungible tokens use blockchain technology to certify the authenticity and ownership of a specific and unique digital asset. Blockchains are the technology that cryptocurrencies such as the ever popular Bitcoin and Ether are built upon. While a single digital coin, lets say, a Bitcoin is the same as any other Bitcoin (which is known as fungible), each and every NFT is a one off, unique asset with only one certified owner.

With an NFT, even if the associated digital asset can be copied and shared, there is only one certified owner of said asset.

For example, bitcoin is to any other form of fungible currency (a fungible asset), a non-fungible digital asset is likened to an original painting. Anyone can buy a print of Johannes Vermeer's "The Girl with the Pearl Earring", but there is only one original hanging at Mauritshuis in The Hague.

Of course, NFTs can also be more than artwork but we will delve deeper into the world of Non-fungible tokens later.

In brief, an NFT provides to creators of digital assets certification and authenticity on their original ownership. NFTs are being traded and collected more and more each day and this has also opened the more opportunities for artists to sell their work.