What are NFTs?
A spectrum rounds digital art....
NFT was picked as the word of the year by the Collins dictionary in 2021. Present every day in the headlines, NFTs drew the world’s attention because of the millionaire values traded by copies of digital art, and of course, also brought tons of criticism from those who considered that all the hype was just for a very well-crafted scam.
Let’s start with the basics: NFTs are any type of crypto asset that has a unique value, that is, it cannot be exchanged for another equal asset. Hence, its name: it is a non-fungible token. Any currency can be exchanged for another one at a corresponding value. But NFTs can only be exchanged for currencies that also match their value. Think about it this way: we know that a NFT can be sold for cash, and it can be bought with that same given value. However, if this same NFT could simply be exchanged for another NFT, then neither of the two involved in the trade could be considered NFTs.
That’s the heart of the matter. Just like that.
The exacerbated value of some NTFs is not simply because of encryption. Encryption is just a basic feature. Many other concepts are involved, as you will see throughout this Whitepaper and in our articles on Medium.
NFTs are unique, and they work as an originality and property certificate towards an object.