πΎNFTs
If you don't know what NFTs are, we are here to help you understand the basics and how it will relate to your projects with RareCircles.
What is an NFT?
NFT is an acronym for non-fungible-token.
What is βnon-fungibleβ?
Simply put, a fungible asset is something that can be exchanged for another item of identical value. The best examples are cash and commodities: every dollar is the same as every other dollar; likewise, every euro, every peso, every bitcoin and every pound of solid gold.
A non-fungible asset is anything else, from real estate to baseball cards to art. (You canβt swap a Rembrandt for a Warhol and call it a day.)
Where does the βtokenβ come in?
A token refers to a digital item that has been published to the the blockchain using cryptography. The most well known examples of crypto tokens are cryptocurrencies such as Bitcoin and Ethereum.
A non-fungible token acts as a digital certificate of authenticity, which functions like a property deed or receiptβit proves that the ownership of a digital item is unique to one buyer. The NFT can represent anything: photography, animation, music, literature, and so on.
The NFTβs proof of provenance (who/where it came from) or ownership (who currently owns it) canβt be altered or duplicated, but it can be traded or resold by its owner. These transactions happen via the blockchain, where it is permanently recorded.
What does "minting" an NFT mean?
Minting an NFT refers to the act of publishing (or minting) the digital item onto the blockchain. Once the item has been minted, the NFT's ownership rights can be tracked along the blockchain which allows for users to buy, sell, and trade the NFT.
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