Non-Fungible Token NFTs

NFT (Non Fungible Token) or in French, (Non Fungible Token).

Definition ¶

Non-fungible tokens, or NFTs, are pieces of blockchain-related digital content.

The NFT is considered as a new investment tool on the digital art market, en as a representation of a digital work. It is of interest to collectors, fans of digital art, video games and investors.

Definition

The NFT is a non-fungible token

He represents a active both physical and digital registered on a blockchain. He thisconfirm the authenticity of this asset and its non-interchangeability.

In this sense it is unique. NFTs are not interchangeable, no two are the same.

The NFT is considered a token that is intended to be non-fungible and unique.

A token ¶

The Monetary and Financial Code, in its article L.552-2, mentions its definition.

Article L552-2
Creation LAW n°2019-486 of May 22, 2019 – art. 85

“For the purposes of this chapter, a token constitutes any intangible asset representing, in digital form, one or more rights that can be issued, registered, stored or transferred by means of a shared electronic recording device making it possible to identify, directly or indirectly, the owner of said property. »

Not fungible ¶

Fungible is said of a thing interchangeable against a thing of the same value, of the same nature, or of the same quantity.

NOTwe fungible is one thing which cannot be replaced by something of the same value, of the same nature, or of the same quantity.

An NFT has a cryptographic connection with the support of a unique, non-fungible, and unique work. Its programming code is unique on the blockchain.

NFT is a digital token representing a single item, registered on a blockchain allowing its owner to be identified, and legally representative for its holder.

Assets represented by NFTs ¶

  • digital artwork
  • physical works of art
  • tweets
  • Collections
  • sporting moments
  • GIFs
  • Virtual trading cards
  • Short videos or author music clips
  • Entrance fees to a private showroom of a luxury brand,
  • Being present in video games

For example, Twitter co-founder Jack Dorsey sold the very first tweet. The price of this NFT is $2.9 million.

When an NFT is traded, it is not the underlying artwork that is being traded, but it is the certificate of authenticity of the work which is the subject of the transaction.

Forinvestor this takes the form of the receipt of a digital file representing the certificate of authenticity of the underlying asset.

Getting to NFT: the tokenization process.

Tokenization is the process of replacing sensitive data with an equivalent element (Token).

It is registering on a token an asset or a title of ownership on a blockchain with the rights attached to it.

The asset represented by the token, also called the underlying asset, can exist in both digital and physical form.

By doing so, the token has no meaning outside of its operating system.

Here for an NFT this corresponds to the registration of a title deed or a certificate of authenticity of a digital work on a non-fungible token issued on a blockchain.

Work ¶

The NFT represents the certificate of authenticity or ownership of a work on the blockchain, in the form of a cryptographic token.

The certificate of authenticity is integrated into the NFT, it allows the interested investor to verify its authenticity.

NFTs can be bought and sold like other types of assets, their value is determined by supply and demand.

Buyers are willing to pay based on scarcity and demand. There is no certainty of future earnings.

Buy or sell an NFT ¶

Choose the market and the platform on which to buy.

The opening of a digital wallet will be carried out to store the Net

And take into account the cryptocurrency needed for the transaction. You will need it to complete the sale. Most transactions are done with Ethereum

Transaction fees

Fees: Some exchanges charge “gas” fees, corresponding to the energy required to carry out the transaction on the blockchain, Ethereum conversion costs, selling and buying fees.

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Non-Fungible Token NFTs


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