NFT Explained in 100 words

Types of tokens

1. Fungible tokens — Its replace by another identical token
2. Non-Fungible tokens — Non-replaceable token like you 😉

Let’s understand in brief

Example 1

“Peer1” want to exchange token with “Peer2” both have $10 for exchange, this is called fungible or replaceable.

Example 2

“Peer1” have $100 and “Peer2” have 1ETH which is not same as $100,because both have different currency value so that they can’t exchange each other. This is called Non-Fungible token.

Now Let’s understand NFT

NFT means is just a ownership of digital item(digital item can be anything which can be created digitally).

How To create/sell NFT

1. Build a Smart contract
2. Creating a metadata of digital items(Meta data is a information of digital items like image location, description, attributes ,size of image etc.).
3. Listing your NFT on a popular marketplace.
4. Show your NFT or Sell it by doing marketing of the digital art.

• Onchain is store in smart contract — Its centralized servers like AWS(Mutable information).
• Offchain is store in servers — Its decentralized servers like IPFS(Immutable information).

What is Minting ?

Transfer of digital item into crypto collectibles is called minting.

What is Collectible ?

Its a value/price of any digital items which can fluctuate.

What is Asset ?

Its a digital collectible called asset.