What Are Non-Fungible Tokens (NFTs)?

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A non-fungible token (NFT) is a digital asset that has no physical or digital properties. These tokens differ from fungible ones by incorporating a uint256-based variable called a tokenId. This variable is globally unique, and can be used for special identification purposes.

NFTs can also be used for identity management. Unlike physical ID cards, which must be presented at every point of entry or exit, NFTs can be used as an online ID. Artists and buyers can use NFTs to protect their identity in a digital world. Moreover, NFTs can be used to monetize art works by selling them.

Typically, NFT transactions are sent using a cryptocurrency wallet. This is done by sending transactions represented as ERC-777 transactions. These transactions are encrypted, and they follow certain protocols to avoid hacking. When sending NFTs, buyers should make sure to send the original data. This way, a malicious actor cannot use the private key to steal money from sellers or buyers.

NFTs are a great way for digital artists to interact directly with viewers of their work. They can also be used as a means to track the provenance and production of a particular work. A number of NFTs are currently on the Ethereum network.

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