Cool Backpackers

What is an NFT?

In its basic form, an NFT (non-fungible token) is a collectable item. These items can be works of art, animated images, songs and many other creative expressions that an artist can up with.

One of the differences between NFTs and cryptocurrencies is the way these assets are traded. Cryptocurrency assets are designed to be traded with other assets of the same type. NFT assets are not designed or treated in this way and can be traded for varying amounts with values changing daily. NFTs are referred to as non-fungible because they represent an asset that is truly unique.

An NFT can be a photo, a piece of art, a song or video. It may include the right to use an artist’s creation for any purpose, or it may not.

Since most digital files can be copied easily, selling a rare digital asset can be a complicated process, involving many people to verify and confirm its authentication. An NFT token simplifies this process by confirming that a digital file is the one-and-only original, while verifying the asset’s creator. The value of an NFT is established by the creator and can be increased by collectors. After the initial sale of an NFT, creators can receive royalties on all future sales of that item.

Here are some additional links about creating and selling NFTs: