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What Are NFT and ERC721?

Fungible and Non-fungible Tokens Fungible and non-fungible Value: The Amount That the open market is ready to pay…

Fungible and Non-fungible Tokens

Fungible and non-fungible Value: The Amount That the open market is ready to pay for something.

The Value is totally depending on supply and demand.

Fungible: The Quality of an that you can exchange the asset with another asset but the value is the same.

Suppose You Have Two 5 Rs(INR) Notes and that two notes you can exchange with 10 Rs(INR) Notes. You Can See Here The Value of Two 5 Rs Notes is equal to the 10 Rs Notes so the value is the same and the type is the same.

Example: Currencies, Gold, Precious Stones.

Non-Fungible: The Quality of an asset is the same but not exchangale.

Suppose You Have Two Car and both car has a different brand but the price of the car is not the same so the cars are not exchangeable because the value of both cars is not the same and that is a non-fungible token.

Example: Real State, art, sports cards.

Why NFT?

In Short, Terms if I say if you want the ownership of digital assets then NFT is needed. We Understand it by the below example first we take 

  1. Trading of physical assets: Physical Assets mean the type of assets that you can touch, feel and get ownership of that assets.

Example: Gold, If you want to buy gold and that gold you buy from the shop or particular place and pay something for gold and after paying something for gold you get the receipt that you pay the amount for the gold and you get the ownership of this gold. 

  1. Trading of Digital assets:  Digital assets means arts, painting, images that type of things that are not physical objects that called digital assets.

Example: Arts Work, painting, Someone who uploads his arts on the internet but on the internet anyone copies your arts and use it and who are uploading the arts don’t get the ownership of that arts so the price of that arts come less.

To solve the problem of ownership and price of digital assets The NFT Is NEEDED.  

What Is NFT?

In simple terms, NFT is a kind of Collectibles, similar to pokemon cards and painting. 

The procedure of converting your work in NFT is Called Minting.

What Makes NFT Uniques:

  • The NFT is totally based on blockchain and cryptocurrency.
  • NFT Can Not be segmented into smaller parts.
  • Supply is limited.
  • The Price Of The NFT is decided by the owner.
  • Who Create The NFT of particular things then directly get the ownership.
  • The NFT is not Exchangeable we can not Exchange one NFT with the second NFT.

Working Of NFT

Simply  Give The unique id on particular images, artworks, and paintings thats NFT is working let’s understand it by the below example.

Example: Suppose you create an NFT of images and upload them on the network then the system automatically gives the unique id of your NFT. 

Examples of NFT: The Most Popular NFT Crypto Kitties and Crypto Punks.


Why NFT is so Much Popular?

The Component that makes NFT popular provide validation of authenticity.

Note: We Don’t buy NFT for logical reasons we buy for emotional reasons.

Advantages of NFT

  1. NFT Can not be robbed.
  2. Ensure Copyright
  3. Easily Transable.

Features of NFT

  1. Indivsible : You Can Divied The NFTs.
  2. Verifiable : The NFT is used blockchain technology so every NFT data and transaction store on blockchain so because of blockchain technology we can say that NFT is verifiable.
  3. Indestuctable : That means the record of NFT is immutable because of blockchain technology.
  4. Non-interchangable : We Can exchange the NFTS.

What Things NFT Allows : 

  1. Buying Digital Items.
  2. Selling Digital Items.
  3. Verifying ownership of Digital Items.

Myths of NFT

  • With NFTS a buyer gets the ownership of and item.
  • NFT Gives Royalties.
  • NFT items can not be copied.
  • NFT generates cash flow.
  • NFT are liquid.

Reailty of NFTS

  • They might be simply getting a version that is digitally signed by the creator.
  • NFTs do noy provide you with royalty.
  • NFT items can be copied.
  • NFT can only be sold.

ERC721

It implemented a standard interface between applications and smart contract  driven tokens on ethereum

Some important functions of ERC721

  1. Transfer
  2. Approval
  3. Owner of tokens
  4. Balance of tokens.
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