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NFTs Explained: What Are They and How Do They Work?

Photo by Andrey Metelev on Unsplash

NFTs, or Non-Fungible Tokens, have been all over the news lately, with record-breaking sales and celebrity endorsements. But what exactly are NFTs, and how do they work? In this blog post, we’ll break down the basics of NFTs and explore why they’ve become such a hot topic in the world of art, music, and beyond.

What Are NFTs?

First things first, what does “non-fungible” mean? Fungible goods are items that are interchangeable, like dollars or bitcoins. Non-fungible goods, on the other hand, are unique and cannot be replaced by something else. For example, a one-of-a-kind painting or a rare baseball card.

An NFT is a digital token that represents ownership of a unique asset, such as an artwork, video clip, or tweet. While the asset itself can be copied or viewed by anyone, the NFT provides proof of ownership and authenticity. NFTs are stored on a blockchain, a decentralized digital ledger that records every transaction and ensures that the NFT is unique and cannot be duplicated or destroyed.

How Do NFTs Work?

To create an NFT, an artist or creator uploads their digital asset to a marketplace that supports NFTs, such as OpenSea or Nifty Gateway. The marketplace then mints the NFT, creating a unique token that represents the ownership of the asset. The…

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