What are NFTs?

An introduction to non-fungible tokens.

Let’s talk about NFTs.

Why not? There’s plenty of hype and it seems just about everyone has the next mega-million NFT. Is it technology? Is it art? Is it complicated? How do I create one? How do I buy one?

There’s much to learn, but as this is the first in a series of NFT orienting articles, let’s start with what an NFT is.

In the technical sense, an NFT, non-fungible token, is a blockchain-based token that represents the rights to the ownership of an asset. Take for example the title to a house. Rather than being paper-based or in a traditional database, the ownership of a house could be represented by a single NFT. Whoever holds that NFT would then be the owner of the house. This same logic applies across all NFTs — they represent transferable ownership, whether of a physical or digital item, and across a plethora of use cases such as music, artwork, property, trading cards and many other forms of collectibles and assets.

Most NFTs are based on the Ethereum blockchain utilizing the ERC-721 and ERC-1155 token standards. These types of non-fungible tokens leverage the benefits of blockchain technology to be indivisible, verifiable and immutable. Each NFT is a unique asset and is not interchangeable (unlike dollars, which are all functionally identical), and the ownership of the NFT is verified through a public ledger that can not be manipulated by any third-party.

NFTs today mostly consist of digital collectibles, but when the technology is fully adopted across a wider range of use cases including property titles, they will make a large impact on not just creatives but the very way the whole world tracks asset ownership.

In its simplest sense, NFTs are collectibles — think of them as the evolution of digital collectibles in a manner that cannot be destroyed, proves ownership and can reward its creator each time it sells based on the smart contract embedded in it.

An NFT can also provide far more than a piece of digital art. It can embed music and video, provide a physical good as well as a digital one, it can open up one-on-one experiences or unlock access. It can enable most anything you want it to, connecting people from all over the world.

NFTs are perfect for the digitization and ownership tracking of assets such as artwork, as each NFT can represent a completely unique asset and allow for the peer-to-peer trading of these in a never-seen-before way. This new type of asset can be transferred anywhere, anytime, without restrictions or issues that would have otherwise been commonplace.

What draws you to an NFT? Is it an investment? Does it bring you closer to the artist? Does it fit your collection? Or do you simply enjoy it?

Any and all answers are correct as the truth lies in the beholder.

At AkoinNFT, we actively seek out exclusive artists, interesting drops and icons with whom we can strategize and collaborate to create something special for their audiences, allowing a much deeper connection than traditionally possible.

There are many marketplaces and ways to purchase NFTs, whether directly from new drops by creatives you’d like to support, or from the secondary market. And over the next few weeks, we’ll be sharing a number of articles aimed at educating users on how to participate in the NFT market.

Until then, please remember the AkoinNFT philosophy:

We believe in artists.

We support artists.

Whether on a stage, a field or on our own canvas, we are all artists. And the power is now back in our collective hands.

The AkoinNFT ecosystem will not only change your world, it will change the world.

Akoin is a new cryptocurrency from visionary changemaker Akon and is the foundation of the Akoin Ecosystem.

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