Learning The Basics - Virtual Blockchain Worlds
NFT's & Blockchain
A non-fungible token, (NFT), is a digital token that represents true ownership of a unique asset on the blockchain. Put more simply, NFT’s are essentially next generation digital collectables, and come in various forms such as game items, digital land, event tickets and much more.
Furthermore, no two NFTs will ever be the same. For example , if you buy a plot of virtual land in Decentraland, who support land ownership through NFT, then you will be the owner of that NFT land plot. As with land in real life, there will only ever be 1 plot of land in that exact location, which makes it unique, adding a scarcity factor into the mix. The value of any NFT is usually determined by its rarity, coupled with demand.
The role of Blockchain technology, is managing the true ownership of NFT’s, and benefits that come with them. As the owner of a land NFT, the underlying technology gives you the permissions to build on the subsequent land. Blockchain also prevents copies or forgeries being made, and at the same time facilitates the trade aspect from one person to another.
If you want to learn more about any of the underlying technology mentioned in this educational section, please refer to the further reading section.
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