Anything that can be converted into a digital form can be an NFT.
Everything from drawings, photos, videos, GIFs, music, in-game items, selfies, and even a tweet can be turned into an NFT, which can then be traded online using cryptocurrency.
Working of NFT:
If anyone converts its digital asset to an NFT, he/she will get proof of ownership, powered by Blockchain.
There is a need for a cryptocurrency wallet and an NFT marketplace where one can buy and sell NFTs.
Some of the NFT marketplaces are OpenSea.io, Rarible, Foundation.
NFTs are different from other digital forms in that they are backed by Blockchain technology.
NFTs can have only one owner at a time.
Apart from exclusive ownership, NFT owners can also digitally sign their artwork and store specific information in their NFTs metadata.
This will be only viewable to the individual who bought the NFT.
How is an NFT different from a cryptocurrency?
Apart from NFTs and cryptocurrencies being built on Blockchain, both are different from each other.
Cryptocurrency is a currency and is fungible, meaning that it is interchangeable.
For instance, if one holds one crypto-token, say one Ethereum, the next Ethereum that the one holds will also be of the same value.
However, NFTs are non-fungible, which means the value of one NFT is not equal to another.
Nonfungible means NFTs aren’t mutually interchangeable.
Every art is different from others, making it non-fungible, and unique.
