NFTs What Are They? A Practical Guide to Non-Fungible Tokens

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**What you need to know about NFTs:**- NFTs are digital assets that operate on the blockchain, proving that you own something unique.- Unlike bitcoin, each NFT is unique and cannot be exchanged one for one.- Opening new avenues for earning for artists and collectors around the world## The Difference Between Exchangeable and Non-ExchangeableImagine - if you have one złoty, you can easily exchange it for another złoty. Both coins have the same value. But if you own an original Picasso painting, you cannot exchange it for another painting of the same value, because each has its own history and uniqueness.This is exactly how non-fungible assets work. They are specific, individual, and have different properties. This is what attracts collectors - they want to own something that no one else has in exactly the same form.## How Do NFTs Work?The tank technology (blockchain) serves as the foundation. It is a public ledger where the entire history of transactions and ownership changes is recorded. As a result, all changes of NFT ownership are permanent and easy to verify - anyone can ensure that a given NFT is original.The second key element is self-executing programs that automatically execute contracts. Thanks to them, NFTs can be created, transferred between owners, and managed without unnecessary intermediaries.Technical standards are also important, ensuring that NFTs on different networks can operate in harmony with each other. The most commonly encountered are those operating on the Ethereum and BNB Chain networks.Creating an NFT is called "minting" - a process in which a regular digital file is transformed into a permanent token on the blockchain. When you purchase such an NFT, you receive a unique identifier attached to a specific digital asset.## Where Are NFTs Used in Practice?### Art and CollectingArtists gained the ability to sell their works directly while retaining information about the originality of each copy. Collectors can display them in virtual galleries, resell them, or even lend them.### World of GamesIn NFT games, they serve as items, characters, or virtual real estate. Players can trade what they have acquired and create secondary markets. The game becomes an ecosystem where the player can earn.### Event TicketsOrganizers can issue tickets as NFTs - an immutable document confirming participation. They can be transferred between people without an intermediary. Additionally, they can be linked to exclusive bonuses - access to VIP, limited items, or special content.### Earning through StakingSome platforms allow you to collateralize NFTs, enabling you to earn profits. You still retain ownership of the token, but you generate passive income.## Known Examples - From Idea to Millions**CryptoPunks** is a legend. A project from 2017 featuring 10,000 unique pixel art characters. Each figure has different traits. Celebrities loved them and set them as avatars - the project showed that digital art can be valuable and desirable.**Bored Ape Yacht Club** is a collection of 10,000 hand-drawn apes, each one unique. Owners gain access to exclusive events and virtual spaces. A combination of art and social experiences.**Decentraland** is a virtual world on the blockchain. Users can buy land, trade items, and build experiences. It showcases the future of the metaverse built on solid foundations of decentralization.## Myths Worth Debunking### With 1: NFTs Are Completely SafeNo. Although blockchains are secured, there is a risk of fraud - phishing, code vulnerabilities, counterfeits. And since the market can be volatile and speculative, the value of NFTs can drop drastically. No one guarantees long-term price stability.### NFT and cryptocurrencies are the sameNo. Both are digital assets on the blockchain, but they serve completely different roles. Cryptocurrencies are used for transactions - one bitcoin = one bitcoin, all are equivalent. NFTs are unique and non-fungible - each has its own specialty. Value comes from uniqueness, not from exchange function.## SummaryWhat are NFTs? They are digital souvenirs that change the way we think about owning something online. Artists can profit from their work, collectors can own things that are truly unique, and the digital industry gains new opportunities.But remember - every investment comes with risks. NFTs can be fascinating, but before entering this world, it is good to understand the mechanisms and potential dangers.