Apart from changing the traditional financial landscape, it is worth noting that the blockchain technology is also bringing significant changes into the 21st century digital art world.
If you are an art enthusiasm, we are sure the news of digital artworks which normally called as ‘non-fungible token (NFT)’ sold with a ridiculous amount of money on the internet are not something new to you. And yes, we know the concept of it is hard to grasp so let us clear up your confusion on this one.
First thing first, what is a NFT? To put it in layman terms, NFT is a digital asset that represents art, music or video or anything that can be shown online. They are usually sold and bought in cryptocurrency and encoded with blockchain technology (typically on the Ethereum blockchain).
Let’s say you have bought a video NFT, the video itself might still be available for the public but only you have the proof of ownership. It’s like buying a piece of artwork from an art gallery, but instead of receiving the artwork, you get a digital file, something like that.
What is the difference between cryptocurrency and NFT?
As the name itself suggests, ‘non-fungible’ means it is one of a kind and can’t be replaced with something else. While cryptocurrencies are ‘fungible’, meaning they can be traded or exchanged for one another.
And also, most investors and traders buy cryptocurrencies for the sake of trading or use it as ‘currency’ in their digital wallet but the buyers or collectors of NFT usually buy NFT as their ‘art collection’. The usage of this two items itself might just be the biggest difference they have.
