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NFT – what is it: what is the meaning of a simple example

NFT – what is it: what is the meaning of a simple example

In the modern world, recently, there are more and more new and not always understandable terms, concepts, especially from the digital world.

Here such a name appeared NFT.

For some reason, everyone needs it - they buy it, earn money from it.

So what is this "game" called NFT - what is the essence of this thing and why it has become so popular.

To understand this whole kitchen in a simple way, let's give an example.

There is a boy, Petya. Petya has a phone. He takes pictures of himself, takes selfies. Petya's photo is such a unique thing, no one else has such a photo in the whole world.

Petya thinks - And if someone somehow "spies" her through the network, it's enough in the modern world of technology to do it.

Petya is afraid that his unique photo may fall into other hands without his desire, and he sees some value in it :))

And then he finds out that there are services on the Internet such as OpenSea on blockchain Ethereum, Mint on the Polygon blockchain, LaunchMyNFT on the Solana blockchain, etc., by uploading to one of which, his picture will be linked to a certain token, which, in turn, will be signed by the identifier of his created account (this network), which will confirm it the uniqueness (that this photo is his) and, in fact, in itself, will already make it impossible to kidnap her from this network. And besides that, there will also be an opportunity to sell a photo and make money on it, unless, of course, someone on the network shows a desire to do it.

'what is NFT - by example

Before you create your account, Petya must have a wallet of the network in which he plans to save his photo. It is on it that it will be stored in relation to the generated token.

Petya creates a wallet in the Ethereum system and his NFT account, for example, in the OpenSea service.

He logs into the system through the created wallet, uploads his image to it (OpenSea supports various graphic formats JPG, PNG, GIF, SVG, MP4, WEBM, MP3, WAV, OGG, GLB, GLTF up to 100 MB).

Before uploading, he describes his work, sets the parameters of the token (resellable - possible resale, copyright_transfer - transfer of copyright to the object of its owner, etc.) and sends it for moderation by clicking the Create button».

After a system check, the token to which his photo is attached in the Ethereum blockchain becomes the property of Petya.

Now he can even sell it (of course, not on the clothing market, but on the Ethereum blockchain network, the same system).

From all of the above, it becomes clear that NFT – this is a non-interchangeable (unique) token confirming the owner's right to own any digital asset on the network blockchain, which can be uploaded there (and, for example, not a refrigerator, a cow, a house on the edge - having tactile perception).

In fact, Petya, having uploaded his photo (the object of ownership) to the blockchain network, received a digital certificate, which is called NFT, where his picture (the address on the network image) and other information confirming his rights and capabilities are indicated.

'nft certificate - proof of ownership of a digital asset

This is the whole point of NFT, and according to this principle, the purchase and sale of unique digital things (paintings, photographs, music, etc.) on the blockchain network is built, tying them initially to the generated unique token.

Transactions on the platform are carried out in the currency of the blockchain in which the NFT token is served (ETH, DAI, etc.).

Payment for NFT is made in two payments:

  • 1st - payment for servicing a transactional operation, for moving a token in the network (such a concept as paying for gas)
  • 2nd - payment directly for the object of sale itself (photos, paintings, etc.)

But if Petya were not Petya, but, for example, a famous person Cristiano Ronaldo, then probably many would want to buy a selfie directly made by him. Therefore, today NFT is interesting, from the point of view of earnings, mainly in those circles of people who have some kind of popularity.

That's why such a hype appeared on the network, against the background of the possibility of blockchain to provide such services.

Personal opinion!

NFT today is purely some kind of gameplay element built on human psychology and his personal preferences built on it, where to spend extra loot, and nothing more, in the form of what tasks he is solving now - not giving a special advantage to society in solving their pressing ….

NFT - what is it: what is the meaning of a simple example – Something like that!

автор - Михаленко Р.
M R. Автор - kaktotak.by Специализация: финансово-экономическое проектирование - моделирование бизнеса, инвестиционных проектов реального сектора, анализ и оценка эффективности, оптимизация системы управленческих решений.

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