What NFT means?
NFT (non-transferable token) has been actively conquering the digital world for several years now, and the volume of transactions is only growing every day. Back in 2014, the history of NFT began, but only seven years later have many investors, celebrities and dignitaries taken notice of this type of technology.
The same technology used for bitcoins (blockchain) is used to have authentication for NFT tokens and to manage them. Today, people are willing to invest thousands of dollars in digital art, tweets, JPGs, GIFs and trading cards. This type of crypto-token is presented as a unique digital asset and cannot be replaced by anything else. Fiat currencies like U.S. dollars can be replaced, so they are interchangeable, bills can be exchanged for any other dollar bills. Cryptocurrency tokens can also be exchanged for any other token.
NFTs are one-of-a-kind non-interchangeable and each token is unique in its own way. In the process of encryption, each NFT token acquires its own digital code, which will distinguish it from other types. This is the process that allows for the convenience and security of the blockchain, but only for a specific asset that has a certain value.
NFTs are stored in a blockchain system in the same architecture that includes support for cryptocurrency, the uniqueness of the encrypted identification codes distinguishes the tokens from each other. The fact that NFTs are similar to cryptocurrencies converges on the same system architecture, other qualities that would be similar they do not possess. While residing in the same blockchain, NFTs can be different, with each bitcoin having the same value.
The value of NFTs is based on both supply and demand. The creation and issuance of tokens takes place in different frameworks. And once NFT is created, it can be traded in markets that place sellers and buyers.
NFT began to grow in popularity back in June 2017, when Larva Labs launched CryptoPunks, a collection of tens of thousands of unique avatars and could be purchased on Ethereum. But the launch of the virtual game CryptoKitties made NFT not only popular, but even viral. Since that period, investment in NFT has only grown.
Today, most NFTs are associated with collectibles, which are virtual goods in video games, as well as art in digital format. Many users have begun to approach the purchase of digital art or collectible cards as an investment, and this is only the beginning.