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What is NFT? NFT Full Form and Everything you need to know

If you looking for What is NFT? NFT Full Form its Working, why Buzz of NFT is everywhere all around or if you are confusing it with Cryptocurrency, then you are at perfect place here in this article of theredswan.in we have covered everything….

What does NFT means? What NFT stands for?

NFT – Non Fungible Token

I am 100% sure that the full form is not making any sense that what it is :p. Let me divide it into 3 pieces first Non second Fungible third is Token. Now for better understanding lets understand “Fungible” first.

In the simplest language, anything which is Fungible can be replaced with its identical one. For example: Suppose a 1kg sugar can be replaced with exactly 1kg of sugar having same size and color of crystals, or an A4 sheet can be replaced with another A4 sheet of same brand having same quality. I hope I am making sense. So Commodities, common shares, option and currency are fungible items.

Now its comes in mind that then what is Non Fungible – Any thing which can not be replaced with its identical things also. Now you will say Anubhaw please provide few examples to make it more clear, so here I am ready with two perfect examples which I hope you will never forget. A piece of Diamond of say 10 karat can not be replaced with another 10 karat Diamond, because of its different cuts and crystal structures. Another example is Land, I am sure I need not elaborate anymore. 

Now If the word Token is clear then whole NFT will make sense, Token is something which can be used to buy something of certain value. Token money is somewhat similar to Fiat money, except the fact that token is a limited legal tender i.e. it has a upper cap on its usage. For example Coins in India can not be used above Rs 1000, as per coinage act.

NFT is making sense or not? comment below. You will be astonished that anything digital literally anything, is NFT.

NFT of dogecoin
NFT of Dogecoin (you can buyit)

Why NFT? How Does NFT Works?

NFT is an individual token which has some value stored in it. Because of the value it stores, it can be traded in the market with its value set by the demand in the market. The unique data which is stored in them makes it easy to verify its ownership. Only this feature makes NFT 1st preference of buyers, because they can validate their ownership within seconds.

This Validation becomes possible because of the ledger maintained on blockchain. Ethereum is the most used platform which provide this feature. There are different other crypto currencies like Polygon Network and many more are there, which also offer similar platform for NFTs.

:) Interested in Buying NFT click here to know How to Buy NFT, detail guide with step by step process :)

Is NFT a Cryptocurrency?

The answer to this question is a big No, the only similarity between NFT and cryptocurrency is the technology used in making them and here only all the similarity ends. Cryptocurrencies are fungible token and NFTs are non fungible by nature. NFTs are non replicable cryptographic tokens.

An Example of NFT?

NFT creates a lot of confusion in the mind but for the ease I am sharing few examples of NFT with which we are more familiar:

  • The Featured Image used here is an NFT, check here
  • Domains : like theredswan.in , google.com, yahoo.com, they are unique and can not be replicated and verification pf their ownership is also easy and one can not alter this data.
  • Digital Collectables you can check them here
  • Games collectables you can check the market place here

you can also read : How UPI can replace other payment system in world

FAQs related to NFT

Full Form of NFT

NFT stands for Non Fungible Token

Where is the best place to buy NFT?

There are many platform which offers buying and selling of NFTs, here is top 3 famous platforms
1. Opensea
2. Axie Marketplace
3. CryptoPunks or LarvaLabs

How can I get a NFT?

Either you purchase it or someone can gift it to you 😛
You can buy Ethereum transfer it to you crypto wallet and connect that wallet with NFT market place

Is Bitcoin a NFT?

No

What is the difference between NFT and cryptocurrency?

Cryptocurrencies are fungible where as NFTs are non Fungible. NFTs are unique in this universe.

Why are NFTs so expensive?

Because their authenticity can be verified. The one who ones it can claim its ownership and its visible to everyone out there. So you can not steal it.

Sources : TheVerge , Investopedia