NFT stands for Non-Fungible Token. It is a concept that refers to a digital asset that cannot be replaced due to its unique properties.
How is an NFT defined?
An NFT is a digital object, collectible, unique and non-divisible. Also as a token of value depending on the purpose of the NFT.
Why do NFTs have value?
Depending on the purpose of the NFT and the collection it belongs to, it has a utility, because it allows to create business promotions, resources and protocols.
Why use NFTs?
They are proofs of ownership over an object, which can be digital, physical and linked to a Blockchain transaction. NFTs can have a thousand different uses, not just being pieces of art. Any real-life object can be tokenized as an NFT.
What are the characteristics that give value to NFTs?
Among the characteristics that give value to NFTs, we can find:
- The value of the NFT is based on its utility.
- They are evidence of ownership over an object
- They can be purely digital or physical, linked to a digital object.
- They are registered to an immutable database (Blockchain) so they can serve as time stamps that are used from a proof of transaction or a record of the chain of ownership
- The value of the NFT can also be influenced by its holders or the chain of ownership
- The concept of scarcity gives value to an NFT.
You are just starting Platzi's new NFT Creation Course. Many of the concepts related to Web3 that you will see over the next few classes are vitally important to know and will give you the knowledge to become a great NFT creator.
This is just the beginning!
Contributed by N. Patricia Viveros (Platzi Contributor) with contributions from Luis Francisco Montero and Richard Josbranil López Ortega.
Article reviewed and edited by: Kevin Fiorentino (Platzi Lead Contributor).
Want to see more contributions, questions and answers from the community?