Definition of NFT
NFT is the abbreviation of Non-Fungible Token. NFTs are digitally owned assets. The smart contract technology behind NFT makes ownership possible. This way they can function and display characteristics of paintings in a digital form. Meaning the NFTs cannot be replicated or forged because ownership is established on the blockchain.
An NFT can be seen as a one-of-a-kind assignment of a certain number plus other data, such as an artwork or a link to it, to a blockchain owner (or their public key). The assignment must be maintained by a program that produces – or “mints” – the token in order for it to be transferable and provide information on the current owner.
On most chains, you’ll need a smart contract for this. On the XRPL the Non-Fungible tokens are, like the Fungible tokens, baked into the ledger itself. The ledger has native transactions to mint and burn tokens and to create, cancel and accept offers.
NFT used in a sentence
‘’the technology of NFTs is a way of linking ownership to digital objects.’’
‘’I own this Cryptopunk NFT, I now have my own unique piece of digital art!’’
‘’In the future, when Web3 further develops, more utilities can be added to NFTs, e.g. digital identities, housing sales, etc.’’
History/information/research of the term NFT
Quantum, the artwork, was originally minted in May of 2014 and is widely considered as the first-ever NFT by many, including the auction house. Recently it was auctioned for $1.47 million in June 2021 at Sotheby’s “Natively Digital” sale.
For more information about NFTs in general or some basic information about investing in NFT projects please visit the following articles: