An explanation of the workings of NFTs (Part 1)

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7 Jun 2022
13

Despite looking to the contrary, understanding how NFTs function is much simpler. You could tokenize and sell a picture using NFTs, for example, and then use the token to purchase another piece of art. 

You've done a great job of making the work your own and recording it to make it stand out.

Programming is then used to build a "smart contract" or "intelligent contract." 

Everything you need to know about your buy and everything you need to know about the different transactions you may do with your purchase is included in this contract.

In the same way that cryptocurrencies use blockchain technology to verify their authenticity, non-fiat tokens (NFTs) also do so.

While a non-fiat currency's value is determined by its assets, a cryptocurrency's value is determined by supply and demand in an open market. This is a major difference between the two (depending on the market fluctuation).

This is because, even though cryptocurrencies and NFTs are technologically coupled, cryptocurrencies are not fungible.

How many cryptocurrencies do you own? Investing in cryptocurrency may be an option you've thought about. The most reliable bitcoin exchanges will be shown on a screen within Finest.

Take a look at our technology showcase, if you like, where you'll find a variety of investment funds related to blockchain technology.

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[1] <name>, '<title>' (online, <year>) <link>.
[2] BULB, 'Write to Earn. Read to Earn' (online, 2022) <https://www.bulbapp.io/>

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