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NFT stands for Non-Fungible Token. The terms \u2018non\u2019 and \u2018token\u2019 are simple to understand. It\u2019s the \u2018Fungible\u2019 part that has people raising their brows.<\/p>\n
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Commodities, shares, and dollar bills are simple examples of fungible goods. Something that can be replaced, duplicated, or mutually exchanged. However, assets like land and precious stones cannot be called fungible as they have certain unique qualities that aid in evaluation.<\/p>\n
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So, what is non-fungible?<\/p>\n
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Non-fungible is the opposite; it cannot be taken from you, exchanged, or duplicated. Once an NFT is created, it remains as it is for eternity.<\/p>\n
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Mike Winkleman, an artist who goes by the name of Beeple, recently sold an NFT artwork for US$69 Million. Whoever bought it, now owns this digital painting.<\/p>\n
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NFTs are possible because of a technology called blockchain<\/a> that promotes the idea of a distributed ledger. A distributed ledger is a consensus of replicable ledgers in the hands of numerous people spread out over multiple countries. Anybody who is part of the blockchain can keep a record of another person. This system is the opposite of a bank, which is centralized and keeps information and ledgers confidential in one location.\u00a0Essentially, the difference is the availability of information: banks keep it private while blockchain is open for all involved to see.<\/p>\n <\/p>\n This blockchain technology is the Non-Fungible part of NFT. Since everyone keeps track of what you own, no one can be cheated or scammed. Almost any digital content can be converted into an NFT. You may create a digital house, art, music, a 3D model of Burj Khalifa, sell or buy it and no one else can steal ownership from you. In fact a beloved GIF, Nyan Cat<\/a>, we use at Muslim Pro is an NFT worth US $600,000.<\/p>\n <\/p>\n <\/p>\n Futurists believe that in the world of digital scams, there is finally a way to patent digital material. Instead of relying on mega-conglomerates like Facebook, Microsoft, and Google to create a ledger of websites or digital material, ordinary citizens can use blockchain technology to keep track of what individuals own.<\/p>\n <\/p>\n However, realists are not quite sold to this idea. There is a grey area. No matter who owns the NFT, it is not a full-proof way of stopping someone from making a black-market copy of it.<\/p>\n <\/p>\nDigital Gold or a Fool’s Errand?<\/h2>\n