The NFT Concept

You may already know that each unit of value in a blockchain is called a token. In an open blockchain, all tokens are equal and interchangeable.

For example, one bitcoin can be easily replaced with another, and nothing will change.

Non-fungible tokens are a game-changer, which work differently. An NFT is a digital asset that cannot be replaced with another token without changing the value and basis of the object.

Like cryptocurrency, NFTs are created on a blockchain, which acts as a database to record all transactions. The blockchain guarantees the uniqueness, safety, and anonymity of non-fungible tokens. Thanks to this system, any user can verify the originality and transparency of the history of a particular NFT through the blockchain.

When you buy an NFT token, you are obtaining a certificate for a digital or real object. However, the work itself doesn’t move anywhere. You only use its digitized file or a certificate of ownership. Once created or purchased, the token sits in perpetual storage. This certificate is just lines of code that confirm it is the token owner who has the original copy of the object.

An NFT token can be compared to a painting, which may belong to a gallery, museum, or individual, but the audience can see it in a catalog or exhibition.