What is an NFT? - Non-Fungible Token on Blockchain Explained

This video answers the questions: What is an NFT? How does NFTs work? - NFT Non-Fungible Token on the Blockchain will be explained.

Timestamps:
0:00 Introduction
0:27 What does “Non-Fungible” mean?
1:07 What is a Non-Fungible Token (NFT)?
2:21 What can NFTs be used for?
3:40 Most popular NFT collections
4:38 Video end

Driven by ERC-721, an indivisible smart contract based on Ethereum, a non-fungible token is a cryptographic token that is specific for tracking individual intellectual property.

Digital assets stored in smart contracts are known as non-fungible tokens. They are special because they are unlike anything else that can be found. They can be regarded as collectible objects. Since each non-fungible token has a unique feature, they cannot be traded for one another.

For instance, there are currently roughly 18 million bitcoins in use. Every bitcoin is identical. However, NFTs are distinct from Bitcoin due to their own features. Thus, they cannot be substituted.

They cannot be divided, which makes them non-divisible in addition to being unique. Therefore, the token as a whole constitutes the elemental unit. Digital artworks can also be used to characterize non-fungible tokens. They are rare and have a scarcity element, which raises their worth even further because it is difficult to make them.

Cryptokitties are a popular non-fungible token in the cryptocurrency space. Because each Cryptokitty is distinct, they are frequently sold for high prices. For instance, unlike Bitcoin, a Cryptokitty cannot be divided into smaller portions and then exchanged for several others. Therefore, you have to purchase a Cryptokitty in its entirety and cannot purchase a portion of it.

Not only in this video various crypto topics will be explained. Remember to leave a like, and subscribe to the channel for more materials like this.