NFT tokens or non-fungible tokens are a solution created to allow us to represent objects with unique, unrepeatable and indivisible qualities within a blockchain.
The non-fungible tokens, or NFTs, are one of the solutions that can be created on top of blockchain technology . It has also generated a lot of interest. But why this explosion of interest in NFTs? What are they exactly? What is its utility?
In this article we will answer all this, starting by answering in detail what an NFT is and what makes them work in broad strokes.
Non-Fungible Token (NFT token), uniquely representing the world
First of all, we need to understand exactly what a Non-Fungible Token (NFT) is . In this case, we can explain NFTs as follows:
A non-fungible token is a cryptographic token that has the ability to be a unique and unrepeatable token. One that cannot be partitioned but can be used to represent real or digital world objects along with their own characteristics, as well as ownership of it, while keeping it all within a blockchain representation through a smart contract.
This fairly simple concept gives us a clear idea that NFTs, unlike the tokens we already know (also called fungible tokens), serve to represent unique objects that are not divisible by their properties, without this meaning the destruction of that object, whether real or digital.
A good example of an NFT token would be a collectible. A digital card of a famous sports figure, with limited existence and unique digital markings, is a perfect example of a digital NFT token. However, the same thing happens if, for example, the card were real and we took its properties to the digital world using a blockchain. In this case, the physical card has a digital representation, but this representation would only serve to control the possession of the physical card, allowing us at all times to trace its authenticity, who has had the card on previous occasions, and verify that it is indeed the card we want.
But you may be wondering at this point, how is this possible? What is it that allows NFTs to function as they do within a blockchain?