What Is NFT & How Does It Work? With Examples 2022

What Is NFT

Hello, Welcome to Haxnotrick. In this article, I’ll tell you what is NFT (Non-Fungible Token) and how does it work? with some simple examples so that you can understand very easily. Also, I am gonna tell you how people are making huge money with NFT. So, read this article till the end.

People are confused about NFT’s and they don’t understand what NFTs are. In this technology era, there are many many new technologies are coming that really going to change the world and the online world. So, we must need to understand that and take advantage of these technologies.

Example Of Non-Fungible

Let’s say, you and your friend both have 100$ notes. It means it has the same value and you can exchange that 100$ note with each other and there is no issue because it is the same value.

Now, imagine, a Hollywood hero will give his autograph signature on your 100$ note. Now, your friend comes to you and asks you to exchange the same 100$ note with him.

So, now can you exchange that note with your friend? Definitely no, because now your 100$ note became a unique note because of that signature. So, this is called non-fungible means it’s unique but it can be sold.

What is NFT?

NFT Full-Form = Non-Fungible Token.

Non-fungible means it cannot be replaced with anyone and it’s unique. NFTs were discovered in 2015, but they gain popularity nowadays because of many factors like cryptocurrency, metaverse, blockchain technologies, and many others. This is a decentralized token like crypto.

There are many types of NFTs available now. Like Digital artwork, Domain name, games, music, GIFs, and many more. NFT is based on Ethereum cryptocurrency’s blockchain technologies.

You can create your own NFTs and sell them over the internet. There are some NFTs marketplaces on the internet where you can create and sell your NFTs. Every NFT stores a piece of unique information inside them.

You can covert any digital asset to an NFT. Let’s say if you have your artwork or music you just need to go to an NFT market place then, you can register your digital asset and it will convert into NFT.

Cryptocurrencies are most popular today. People already know this is the future and power of crypto. So, NFTs are also like that. You can make huge money with crypto and NFT as well.

You can receive a lifetime royalty commission, every time your NFT is sold out. When someone buys an NFT token then they will become the owner of that asset. Fake NFTs does not work because it’s traceable with blockchain technologies. Also, NFTs are not tradeable as it’s not exchanged with one another. Because it’s unique and 2 NFTs can’t be the same.

People are crazy about crypto and NFTs. NFT gaming is also another way to make money. There is some NFT game is available. In that game, you can buy some NFT items. And you can be sold them after you finished that game or after the upgrade of that item.

Where and How To Buy NFTs?

There is 100+ NFT marketplace where you can buy NFTs or you can register your own NFTs. Some popular NFTs marketplace name is –

  • OpenSea
  • CryptoKitties
  • Axie Infinity
  • Nifty Gateway
  • Binance

You can use all these websites to buy NFT. First, you need to create a digital wallet to store your NFTs and cryptos. Then you can buy any NFTs by paying cryptocurrency. After that, you can move to any exchange or you can store it in your wallet.

Conclusion

I hope that now you have a better idea about what is NFTs and how they work. So, If you are also want to make your own NFTs then, you can check out the above-mentioned NFTs marketplace.

If you have any queries then, comment below.

Thanks for reading this article.

See you with another one.

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