What is NFT? “A Detailed Review”
🔗 Based on Blockchain
NFTs (Non-Fungible Tokens) are unique digital assets built on blockchain technology. Unlike cryptocurrencies like Bitcoin or Ethereum, NFTs cannot be exchanged on a one-to-one basis due to their uniqueness. They are commonly used in virtual real estate, digital art, music, gaming, and more.
📜 History of NFTs
NFTs existed before mainstream attention. One of the earliest NFTs was "Quantum" by Kevin McCoy, minted on Namecoin in 2014 and later transferred to Ethereum in 2021.
- ERC-721: Standard for NFT ownership and transfer.
- ERC-1155: Introduced later, supports batching NFTs to save on gas costs.
❓ What is an NFT?
NFTs are blockchain-tokenized assets with unique identifiers and metadata, making them distinguishable from each other. They are:
- Non-interchangeable
- Individually valued
- Tradeable for crypto, fiat, or other NFTs
Even if two NFTs look similar, they remain distinct and non-fungible.
⚙️ How NFTs Work
Creating (or minting) an NFT involves:
- Creating a blockchain record
- Verifying data via validators
- Assigning unique ownership using smart contracts
Every NFT has a unique identifier tied to a blockchain address, like a digital movie ticket — each one distinct, even in a collection.
🔁 Bitcoin Ordinals vs NFTs
- NFTs use serial numbers tied to creative content.
- Ordinals engrave identities into satoshis (Bitcoin’s smallest unit), functioning similarly but within Bitcoin.
💡 NFT Use Cases
- 🎨 Art: Beeple and others sell digital art as NFTs.
- 🎵 Music: Kings of Leon released NFT albums.
- 🏠 Virtual Real Estate: Land ownership in Decentraland.
- 🎮 Gaming: Items and experiences tokenized as NFTs.
✅ Advantages of NFTs
- Verified ownership and authenticity
- Global exposure for creators
- Automated royalties via smart contracts
- Reduced intermediaries → lower costs
🚀 Why NFTs Got Popular
- Novelty of digital ownership
- Collectibility and scarcity
- Viral success of projects like CryptoKitties
- Appeal of community, exclusivity, and speculation
💰 How to Buy NFTs
- Set up a digital wallet
- Buy crypto (usually ETH)
- Visit an NFT marketplace (e.g. OpenSea)
- Browse and evaluate NFTs
- Buy or bid using crypto
- Secure your wallet!
📤 How to Sell NFTs
- Choose a marketplace (e.g. Rarible, Mintable)
- Connect your wallet
- List your NFT with pricing
- Wait for bids or sales
- Confirm sale — the NFT transfers upon payment
🏪 What is an NFT Marketplace?
Types:
- Open: Anyone can mint/trade (e.g., OpenSea)
- Closed: Curated for exclusivity
- Proprietary: Created by artists or brands for their own NFTs
Examples:
- NBA Top Shot: NFT trading for basketball clips
- Rarible: Ethereum-based NFT art marketplace
- Trading Cards: In-game and collectible NFTs
🧠 Conclusion
NFTs are reshaping digital ownership and bridging on-chain/off-chain assets. Beyond art, they’re used in:
- Real estate tokenization
- Identity verification
- Certificate validation
Platforms like UIIC explore NFT use for secure rights management, identity, and private trading. Keep an eye on UIIC for future NFT innovation and updates.
