The first money came out about 2,600 years ago, but it has been less than 200 years since humans around the world began to use money in earnest. The fact that money was used means that there has been a big change in history. However, in modern times, another digital revolution is underway. And one of the products of that digital revolution is non other than NFT, and it’s explained below.
NFT stands for “Non-Fungible Token (NFT).” Simply put, it means “one and only exchange ticket.” Why? Because “scarcity” soon becomes “value.”
In the past, buying luxury paintings used to increase the value by millions of dollars. But everything is being digitized, so how do I buy pictures made in jpg files? Computer files are just copied and pasted. So, it means that the concept that came out is NFT.
NFT explained: it’s not coin, it’s token!
You might be curious about the difference between NFT and Bitcoin and Ethereum. To compare, Bitcoin and Ethereum are like real-world money, and NFT is like real-world gift certificates. In conclusion, you can invest in NFT with Ethereum and later convert NFT into money.
There is an institution that guarantees money in reality. For example, only those certified by the state or bank can be called money. Then who will prove NFT? Blockchain technology is used here. Transactions are stored in all blockchain files around the world.
Let’s take an example. When you buy a picture file in jpg, who bought the image is encrypted and recorded in the file. It’s encrypted, so you can’t see the content, but it leaves a record of how it was traded, so you can prove that it’s not just a copied image.
