What are NFTs?.

NFT corresponds to the acronym "non-fungible token", which we can translate as "non-fungible token" or "non-fungible asset", or, in other words, the meaning of NFT means that it is an asset that is unique, it cannot be modified and it cannot be exchanged for another of equal value, because there would not be an equal one. And these assets are also digital, that is, they have no correlation in the physical world (although sometimes they may).

To understand it better, an NFT would be like a unique work of art, for example, Michelangelo's David, there is only one and it is in the Gallery of the Academy in Florence; if someone wanted to have that particular David, they should buy it (if it were for sale) or get a copy, in which case, we would no longer be talking about the original, which is what gives the sculpture value.

The same happens with NFTs, it is a unique digital asset, which although it can be copied, whoever owns the NFT owns the original, functioning as a kind of certificate of authenticity and having the rights attached to its acquisition.

How do NFTs work?

In order to better understand what an NFT is, we must see how they work and what makes them possible.

Any digital content can be tokenized, that is, thanks to blockchain technology and smart contracts, it can be provided with a series of metadata that guarantee its authenticity, identify its author, its starting and acquisition value and all transactions that has lived since its creation (from who created it, who has tokenized it and who, where and for how much has it been sold). As we said, when tokenize digital content (it can be a JPEG file, a meme, an ebook or even a twitt), a digital certificate of ownership and authenticity is created, which indicates that this content is unique and that the property rights are has the person who has acquired it (it is important not to confuse it with copyright, which will remain in the possession of the author of the work).

In this sense, the smart contracts of the NFTs can serve different purposes, for example, ensuring for the original artist a part of the benefits that may be produced by a future token sale.

These digital assets are bought and sold in NFT markets, where their creators or sellers (not always coincide) put them up for sale at fixed prices or through auctions.

Main features of NFTs

The main characteristic of NFTs is that they are digital assets, that is, they are not real and tangible objects that we can have in our homes, but pieces of digital content that will be stored on a server.

Although what has made them fashionable is that they are unique digital content, works or objects, there are also non-unique NFTs, as in the case of digital card games or collectibles based on this technology, such as Top Shot of the NBA or Worlds Apart from Doctor Who, where there are different value ranges for each NFT based on its rarity and exclusivity (for example, there may only be one NFT of a specific card and therefore its value is higher and may even be increased with time).

Elaborado por:

Johan Rodríguez C.I.: 17.300.689

Meysson Trujillo C.I.: 19.494.637

Génesis Martínez C.I.: 22.670.161