B.J.

B AUTONOMOUS COLLEGE

NON-FUNGIBLE
TOKEN
By- Ankita Sahoo
Roll No- 71924534
Department- B.Sc Computer Science
CONTENTS:
 What is NFT ?
 Characteristics of NFT
 How is NFT different from Cryptocurrency ?
 How do NFTs work ?
 Uses of NFTs
 What is the future of NFTs ?
 WHAT IS NFT ?
A non-fungible token (NFT) is a non-
interchangeable unit of data stored on
a blockchain, a form of digital ledger, that can
be sold and traded.

NFT consists of two keys:

 Non-fungible which means non-replaceable
or non-exchangeable.
 Token which means unique.
KEY CHARACTERISTICS OF NFTS
 Indivisibility

 Ownership

 Uniqueness

 Transparency

 Interoperability
 HOW IS NFT DIFFERENT FROM
CRYPTOCURRENCY ?
o Both NFTs and cryptocurrencies are based on
blockchain, utilizing similar innovation and
similar standard. NFTs can be thought of as a
subset of crypto culture.

VS
o The main difference is the fact that
cryptocurrencies are, by their very nature,
fungible. NFTs, as their name suggests, are
not. It can’t be traded or replaced with one
another.

o Cryptocurrencies can be mined whereas

NFTs can’t be mined.
HOW DO NFTS WORK ?
NFTs represent distinctive crypto tokens that are managed on the blockchain. As
blockchain could be a localised ledger, it traces the possession and group action history
of every NFT, comprising a code, distinctive ID and information that remains
unduplicated.
While execution any group action with NFTs, A entry is generated. This entry includes
associate address to the file to ascertain possession of that NFT. Once you transfer one
token to somebody, the token code is appointed to it recipient. This method makes it
easier to see the owner of NFT on the blockchain . NFTs embrace possessions details
so they’ll be simply known and transferred between the token holders. The homeowners
will add information or attributes as per the assets in NFTs.
In earlier times, the possession was supported either keeping the art piece in custody or
elsewhere. But, today, the purchased thing is tokenized into their digital kind and
whoever owns that token owns the particular art piece.
HOW DO NFTS WORK ?
NFTs see the individual tokens with extra info. This extra info permits NFTs in
patterns of music, video, art in JPG, MP3, GIF formats. As NFTs hold a high
price, they’ll be bought and sold-out like different sorts of collectibles. With
the broad spectrum of benefits and characteristics, non-fungible tokens
facilitate numerous sectors to avoid wasting cash on fraud detection,
copyright problems, counterfeit merchandise, and folks managing their
personal and private knowledge.
 USES OF NFTS
 Digital assets:
NFTs have been used to exchange digital tokens that link to a digital
file asset. Ownership of an NFT is often associated with a license to use such
a linked digital asset, but generally does not confer copyright to the buyer.
Some agreements only grant a license for personal, non-commercial use,
while other licenses also allow commercial use of the underlying digital asset.
 USES OF NFTS
 Gaming Industry:
NFTs are widespread within the gaming trade since these
tokens solve a number of their internal difficulties. It can provide
records of ownership for in-game items, fuel in-game economies, and
bring a host of benefits to the players. This opens up all kinds of
possibilities like never before including purchasing weapons or other
equipment that has been tested by people who used it.
 Digital Art:
Digital art is a common use case for NFTs . High-profile
auctions of NFTs linked to digital art have received considerable public
attention. The work entitled Merge by artist Pak was the most expensive
NFT, with an auction price of US$91.8 million. Some NFT collection
including etherrock and cryptopunks are examples of generative art,
where many different images are created by assembling a selection of
simple picture components in different combinations.
 USES OF NFTS
 Identity:
NFTs are good for competitive for identification fraud. Samples of things that
may be digitized to represent identity include qualifications, medical reports, and looks.
Moreover, digital creators will flip their merchandise into NFTs for copyright concepts.
NFT’s use to verify identify involves turning physical game tickets into non-fungible
tokens to avoid counterfeits.
 WHAT IS THE FUTURE OF NFTS ?
NFTs are the future because it is about
decentralizing commerce & increasing transparency.
NFTs are going to play a key role in allowing greater
freedom for people to engage in peer-to-peer trade. It
can eliminate dependencies on intermediaries allowing
artists & creators to be more innovative & better
compensated.
2021 has been a big year for NFTs. But we’re just
getting started. If anything, expect more involvement
from brands as the mainstream adoption of NFTs
continues to accelerate. We’ve seen brands like
McDonald’s, Twitter, Adidas, and Lamborghini release
NFTs or purchase them as investments, and many will
follow suit.