How Does an NFT Work?

❓How Does an NFT Work?❓

NFTs are stored on a blockchain, which is a decentralised public ledger that keeps track of transactions. Most people are familiar with blockchain as the underlying technology that allows cryptocurrencies to exist. NFTs are commonly held on the Ethereum blockchain, but they can also be held on other blockchains.

 

An NFT is made up of digital things that reflect both tangible and intangible elements, such as: • Graphic art • GIFs • Videos and sports highlights • Collectibles

• Designer shoes • Virtual avatars and video game skins

• Music

Even tweets are considered. Jack Dorsey, co-founder of Twitter, sold his first tweet as an NFT for 2.9 million.NFTs are essentially digital versions of tangible collector"s artefacts. As a result, rather than receiving an actual oil painting to put on the wall, the customer receives a digital file.

 

They also have exclusive ownership. NFTs can only have one owner at any given moment, and their use of blockchain technology makes it simple to verify ownership and transfer tokens between them. In the metadata of an NFT, the creator can also store special information. Artists, for example, can sign their work by putting their signature in the file.