6: NFTs | Notion

<aside> 🥡 KEY TAKEAWAY NFTs are collectable unique digital assets (digital images, avatars, songs, videos, tickets…) that live on the blockchain and provide immutable proof of ownership.

</aside>

What are NFTs?

NFT is an abbreviation for Non-Fungible Tokens. They ****are collectible digital assets that became very popular in 2021 by pieces of digital art.

<aside> 🔒 $1 is fungible and can be exchanged for any other $1. NFT is non-fungible and can not be exchanged with other items. NFTs are non fungible and cryptocurrencies are fungible.

</aside>

What’s inside of an NFT?

NFT project contains data of:

👉 who owns the digital asset

👉 who sold it

👉 when it was bought and/or sold

What’s the value of NFTs?

The NFT market is a fresh new channel for creators to present, promote and sell their work. NFTs empower a shift in the creator economy by enabling creators to retain ownership of their work instead of publicize it through medias and “lose” value on intermediaries. This means that creators will always have percentage of re-selling, copyright and reproduction rights to their work owing to the built-in and tracked ownership.

What characteristics do NFTs have?

✅ Indivisibility - NFTs can’t be purchased and used partially.

✅ Uniqueness - No two NFTs are identical. Their metadata is immutable giving them certificate of authenticity.

✅ Scarcity - Scarce drives NFTs value and it refers to how much of a particular NFT is available at any given time.

✅ Ownership - NFTs live on the blockchain and are designed to give you something that can’t be copied.

✅ Transparency - All activities and transactions tied to a particular NFT are transparent and publicly verified.

✅ Interoperability - NFTs can be purchased, sold or traded across various blockchains.