Tech me out: A beginner’s guide to NFTs

What are NFTs?

An NFT stands for non-fungible token. What does that mean? It’s unique and can’t be replaced with anything else. Most NFTs are part of the Ethereum blockchain. Ethereum is a cryptocurrency, like Bitcoin, but its blockchain keeps track of who’s holding and trading NFTs.

What do NFTs aim to do?

NFTs can be anything digital (such as art). They’re designed to give you something that can’t be copied which is full ownership. For example, you buy a Mona Lisa print – anyone can buy that, but only one person can own the original.
Ownership is managed through uniqueID and metadata. It’s minted through smart contracts (programs stored on a blockchain that run when predetermined conditions are met) that assign ownership and manage the transferability of the NFTs. When someone creates or mints an NFT, the execute code is stored in smart contracts that conform to different standards. This information is added to the blockchain where the NFT is being managed.

Why should I care about it?

The NFT world is still relatively new but the technology behind NFTs brings a lot of utility for it to just go away. NFTs are useful to brands because they can use that technology to interact with consumers in a different way, create loyalty and therefore generate additional revenue. It’s particularly important today as we are increasingly seeing a shift from in person-to-person communities to online ones. The popularity of digital goods is also rising with people expressing their identity more online.

Brands from all sectors are coming up with new and exciting ways to use NFT technology every day.

Who is talking about it?

Almost everyone from every industry – tech, fashion, finance etc. and individuals such as buyers or art creators themselves. NFTs have a lot of use cases and can take your brand to the next level if used correctly. That could be for digital content, gaming items, domain names and more.

 

Picture of Medha Pal

Written by Medha Pal

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