First of all, this is not a blog I rant about NFTs or the community behind it. This is a technical overview of what’s behind an NFT. So, you know wh

NTFs: Know What You are Buying

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2022-01-13 12:00:09

First of all, this is not a blog I rant about NFTs or the community behind it. This is a technical overview of what’s behind an NFT. So, you know what you are really buying. Also, I will try to share my views on why an NFT has value. Most of the time, it’s not about the artwork.

I didn't have much experience in the crypto & NFT space. So, in the last couple of weeks, I dug into how NFTs are made of, how they are minted, traded & so on. I experimented with NFTs created on the Solana blockchain because it cost less to play with the network. I even modified the code related to NFTs and tried to learn from it.

NFT stands for Non-Fungible Token. I’m not a native speaker & honestly, this is the first time I heard about the term Fungible. Anyway, let me explain this in plain language.

In a blockchain, we create & share tokens. You can think of a token as a form of currency. Now let’s do some elementary math. If you have a 1 dollar coin, you can exchange that with two 50 cents coins & you still have a 1 dollar. A regular token in a blockchain works just like this. You can break them into smaller parts & share them with multiple people. That’s a fungible token.

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