What is an NFT (Non-Fungible Token)?
NFT is a unique digital certificate recorded on blockchain that guarantees authenticity and ownership of a digital object.
NFT (Non-Fungible Token) differs from regular cryptocurrencies in that each token is unique and cannot be replaced by another (like the Mona Lisa painting). 1 BTC = 1 BTC, but 1 NFT ≠ 1 NFT.
Technically, an NFT is a smart contract (usually ERC-721 or ERC-1155 standard on Ethereum) containing a link to a media file and ownership history. These standards define how tokens are created and transferred between users.
NFTs can be purchased on marketplaces like OpenSea, Rarible, or Magic Eden. Popular use cases: digital art (Beeple, CryptoPunks), gaming items, music, domain names, event tickets, digital identity.
Environmental concerns: NFTs on Ethereum previously consumed significant energy due to Proof-of-Work, but after the 2022 transition to Proof-of-Stake, energy consumption decreased by 99.9%.
🧒 Explain Like I'm 5
Imagine you bought an autographed card of a famous soccer player. It's unique. An NFT is the same card, but digital, and blockchain guarantees it's real and belongs to you.
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