In the present scenario,Guest Posting everything around us drifted towards digitalization. Blockchain awe-inspiring technology that starts to influence the world with betterment.
Before moving into the NFT, let us look at Blockchain,
Blockchain distributed shared ledger technology, where the participants can able to append data on the blocks. The Blockchain is a cluster of blocks that are encrypted using hash functions.
Blockchain has three significant characteristics :
Decentralization - shared distributed ledger.
Immutable - Once entered data, can't be altered.
Transparency - Everyone taking part in the transaction can view the transactions.
Let us get inside our non-fungible token,
Non-Fungible Token
Non-fungible tokens are digital assets having unique values, and they are not fungible. NFT aims to digitalize the artworks over the secured Blockchain platform.
Non-fungible are a feature that indicates that they are not able to fraction/proportion the assets. For example, if you have 1000 rupees, it can be fractioned in a way like 10* 100 Or 10*10*10 Or 50*20, etc.
But in the case of NFT, they are not able to fraction it.
NFT is contains the value and details of the ownership of the digital asset.
NFT can help the artist showcase their artistic talents to the world over the digital platform.
Key benefits of NFTs
Authenticity - Helps to authorize the ownership.
Originality - NFT are securely stored
Integrity - NFT are consolidated into a single entity and immutable
Unique - NFT have Unique from one another, and they are not interchangeable
NFT existence - NFTs built over various blockchain platforms.
NFT Tokens Standards
The NFTs are tokens created on the blockchain. For example, Ethereum uses various token standards like ERC20, ERC721, ERC1145, etc.
When NFT created over Ethereum Blockchain, they use various token standards like
ERC-20
NFT tokens created with ERC 20 standard on the Ethereum Blockchain. ERC-20 standard describes a set of rules and regulations that specific things need to follow for assuring interoperability and adaptability over exchanges and crypto wallets running on Ethereum.
ERC - 721
ERC - 721 exhibits for special unique assets without interchangeability. This has indivisible asset tokenization. ERC - 721 token standards have personalized smart contracts. Smart contracts hold details of the ownership. They do not have any preset rules instead it provides high transparency, security, and immutability.
ERC-1155
ERC-1155 is a token standard that supports both fungible and non-fungible tokens. This standard is used for gaming tokens where it responses quickly comparing to the other two token standards. For example, if the user wants to trade tokens with different features like weapons and suits for different character distinctions their special features. In the case of ERC 721, it is insufficient for gaming platforms.
Purpose of NFTs
The NFTs showcase the talents of skilled professionals over the blockchain platform. Before NFTs, artists get exploited by the middleman/sponsors/display organization, etc. Artist negotiates their demands because they rely on the middlemen.
The Middlemen set the price value for the masterpiece of the artists. The artists negotiate their price values as they rely on others.
The NFTs helps the artist to showcase their talents in blockchain platform with highly secured and metadata containing the ownership details. Artists can display their talent on the NFT marketplace without depending on the middleman. They can directly list their NFTs over the dedicated NFT marketplace.
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