What Is NFT? - Non Fungible Token | NFT Crypto Explained | Simplilearn

Mujeeb Ur Rahman
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Meet SUSAN, an aspiring painter. she wishes to conduct an online painting exhibition for all her digital artworks,

However as the exhibition is online she is worried that her paintings won't be secure as anyone could easily forge or replicate them.


Her friend mark came to her rescue with an idea of NFT, he suggested that SUSAN could buy NFTs for all her paintings as NFTs are trustworthy easily transferable and will also maintain her ownership rights on her artworks, SUSAN had no idea what NFTs were so mark stepped ahead and explained it to her.


NFTs turn your digital assets into one of a kind by creating a unique digital signature which defines the ownership of your assets

NFT BIBLE 2 in 1

and that can be bought and sold for real money CryptoCurrency or any other asset like a non-fungible token AKA NFT.


 Non-fungible tokens means that they are not interchangeable and each of them represents unique assets owned by a specific person, on the other hand fungible tokens are interchangeable and can be divided into smaller units to form the same value.


for example a one hundred dollar bill is fungible as you can exchange it with five twenty dollar bills or two fifty dollar bills but the painting of the last supper is non-fungible as it cannot be generated in bulk even if it is copied it will not be authentic.

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Each NFT contains distinguishable information like who owns the digital asset and who sold it making them distinct and easily verifiable, as it is impossible to forge such a certificate it will secure her painting's originality.



After learning what NFT is, SUSAN was curious to know how exactly NFT works?

NFT basically creates a block chain-based digital certificate for your digital collectibles including games, music, art and many more.

this certificate gives your artwork a unique identity the underlying technology and the programming language used by NFT are the same as other crypto currencies such as block chain and the programming language ETH or script, NFT majorly exists on Ethereum block chain a distributed public ledger that records all the transactions. however NFT is quite different from these cryptocurrencies.



Bitcoin and ethereum are fungible tokens which means if you trade bitcoin or ethereum for one another you will have the same value or item in return basically money. on the other hand NFT is a unique token therefore if you try to trade it you may end up with something completely different in your hands.

The NFT Handbook


crypto punks is a remarkable example of NFT, it enables you to buy sell and store 10,000 collectibles with the proof of ownership being stored on the ethereum blockchain.



After exploring how NFT's work, SUSAN was convinced and bought NFTs for all her paintings, due to this her artworks were secured from any kind of forgery and also gave her artworks a particular value this contributed to increased sales too as everyone was easily able to buy the artwork without any fear all in all her exhibition was a complete success.



similarly NFT has proved itself to be a boon in the lives of many others like Jack Dorsey the CEO and co-founder of Twitter with his very first and famous tweet just setting up my twitter.

And Vignesh Sandarsen famously known as medicovan who bought 69.3 million dollars worth of NFT art on people owing to its increasing popularity. people are now willing to pay hundreds of thousands of dollars for NFTs.



NFT has enhanced media exposure and special perks for aspiring artists like SUSAN on social media this popularity of NFT creates new opportunities for new art platforms. motivating people to buy art from internet platforms and promoting copyright or originality of digital assets.



So here is a question for you

What makes any item Non-Fungible?

A: Exchangeability

B:  Unique Digital Signature

C:  Tradability

D: Distributed Public Ledger

Please give it a thought and drop your answers in the comments section below. Three lucky winners will receive  Amazon gift vouchers.



Many experts in the crypto industry say that around 40 of new crypto users will use NFTs as their entry point. as a result of its growing popularity NFT could represent a more significant part of the digital economy in the future.


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