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Uniqueness: Unlike cryptocurrencies like Bitcoin or Ethereum, which are fungible (one Bitcoin is always equal to another), NFTs are unique. Each NFT has distinct information or attributes that make it one-of-a-kind.
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Blockchain: NFTs are typically created on blockchain networks, most commonly Ethereum. The blockchain serves as a secure, decentralized ledger that records ownership and transaction history, ensuring authenticity.
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Smart Contracts: NFTs are created using smart contracts, which are self-executing contracts with the terms of the agreement directly written into code. These contracts define the characteristics of the NFT, including ownership, transfer rights, and royalties for creators.
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Minting: The process of creating an NFT is called "minting." This involves uploading digital content (like art, music, or videos) to an NFT marketplace, where the smart contract generates the NFT and records it on the blockchain.
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Buying and Selling: NFTs can be bought, sold, or traded on various marketplaces (like OpenSea, Rarible, or Foundation). Transactions are recorded on the blockchain, ensuring transparency.
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Ownership and Rights: Owning an NFT usually means you hold the rights to the specific digital item, but it doesn’t always confer copyright or intellectual property rights. Buyers should understand what rights they’re acquiring.
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Use Cases: NFTs are used in various applications, including digital art, virtual real estate, gaming items, music, and collectibles. They can also represent access to exclusive content or experiences.
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Interoperability: Many NFTs are designed to be interoperable across different platforms and applications, allowing for greater utility and visibility.
How NFT Works ?
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Uniqueness: Unlike cryptocurrencies like Bitcoin or Ethereum, which are fungible (one Bitcoin is always equal to another), NFTs are unique. Each NFT has distinct information or attributes that make it one-of-a-kind.
-
Blockchain: NFTs are typically created on blockchain networks, most commonly Ethereum. The blockchain serves as a secure, decentralized ledger that records ownership and transaction history, ensuring authenticity.
-
Smart Contracts: NFTs are created using smart contracts, which are self-executing contracts with the terms of the agreement directly written into code. These contracts define the characteristics of the NFT, including ownership, transfer rights, and royalties for creators.
-
Minting: The process of creating an NFT is called "minting." This involves uploading digital content (like art, music, or videos) to an NFT marketplace, where the smart contract generates the NFT and records it on the blockchain.
-
Buying and Selling: NFTs can be bought, sold, or traded on various marketplaces (like OpenSea, Rarible, or Foundation). Transactions are recorded on the blockchain, ensuring transparency.
-
Ownership and Rights: Owning an NFT usually means you hold the rights to the specific digital item, but it doesn’t always confer copyright or intellectual property rights. Buyers should understand what rights they’re acquiring.
-
Use Cases: NFTs are used in various applications, including digital art, virtual real estate, gaming items, music, and collectibles. They can also represent access to exclusive content or experiences.
-
Interoperability: Many NFTs are designed to be interoperable across different platforms and applications, allowing for greater utility and visibility.
