SIMPLE DEFINITION OF NFTs?
Firstly, a non-fungible token (NFT) is a unit of data that lives on a blockchain. Each NFT has a unique identification code that can’t be replicated or copied and metadata that can be linked to a variety of things to provide immutable proof of ownership. For example, the metadata an NFT contains can be tied to digital images, songs, videos, or avatars. Moreover, it can also be linked to physical items, like cars and yachts. Finally, it can be used to give an NFT owner access to exclusive merchandise, tickets to live or digital events.
Secondly, NFTs allow individuals to create, buy, and sell things in an easily verifiable way using blockchain technology. This is especially relevant when it comes to digital items, as NFTs give creators a way to establish an item’s provenance. For the uninitiated, “provenance” is documentation that authenticates the creator, ownership history, and appraisal value of a particular piece of art. Prior to NFTs, there was no way to verify the creator and ownership history of digital works.
HOW NFTs WORKS?
When it comes to creating and selling NFTs, the process is really rather simple:
- An individual (or company) selects a unique asset to link to an NFT.
- They add the object to a blockchain that supports NFTs through a process called “minting,” which creates the NFT.
- The NFT now represents that item on the blockchain, verifying proof of ownership in an immutable record.
- The NFT can be kept as part of a private collection, or it can be bought, sold, and traded using NFT marketplaces and auctions.
At SHIFT, we can create, manage, and sell your own NFT collection. We can help you create innovative NFT project that will engage your customers from A to Z.