How NFTs Work?

NFT, which stands for Non-Fungible Token, is a token based on the blockchain. In simple terms, a blockchain is a type of internet network in which data is grouped into a series of blocks.

NFTs are created in the blockchain network. Blockchain is a network where all NFT data is stored. NFT purchases and sales are recorded in the blockchains such as Ethereum and Polygon record purchases and sales of NFTs. For example, the Bored Hamster NFTs are registered on the Polygon blockchain platform.

All digital things in cyberspace can be NFT and recorded as a digital smart contract. NFT now includes digital paintings, artwork, GIFs, tweets, movies, music, picture, game items, avatar, and so on.

What does NFT do?

As you can see, the world of NFT is vast. Blockchain technology and digital currencies have presented us with a new concept. A concept that can be a window to the future. The features of NFT prepare it for the future.

These features have made more people use NFT every day :

• Buying and selling NFTs is too easy. You can easily handle NFTs with a digital wallet.
• The rarity and limited production of NFT make it popular because you become the owner of a rare token.
• Non-dividing NFT tokens are not divided into smaller parts.
• Security in NFTs is based on the blockchain platform.
• The right of ownership and possession is specified for every user who buys NFT and cannot be changed.
• NFTs have a specific authenticity on the blockchain platform.
• NFTs are one of the main tools of the metaverse world.

With these features, NFTs have attracted many investors to buy collectibles or NFTs of a brand or an artist.

It is an example of NFT purchases and investments: Brands may want to introduce themselves to the online world with NFT. Sometimes NFT collection forms a community that supports an economic plan and project. By purchasing these NFTs, members of this community buy tokens and become partners in this financial plan, and with the support of the members of this community, they advance the project.

For example, Bored Hamster NFTs, which form the Bored Hamster community and club, launched a project in the metaverse where members who have bought Bored Hamster NFTs can be partners in this project for free. You can see the details of this project on the Bored Hamster website and be informed about the project’s road map.

Finally, we advise you to act carefully and do your own research (DYOR) when buying NFT. In this regard, read the article on fraud with NFT.