What is an NFT and how does it work

NFTs Explained

NFT is a type of digital token or asset.

Whenever you buy an NFT, you are buying the rights to that specific asset.

• Non-fungible means that it can’t be changed whenever it is created, you can’t split it up and it must be distinguishable from something else.
• A token is a small piece of data that you own.

So, an NFT is a token that you own, that doesn’t change throughout time. Is a piece of data that is owned by an address, and whoever has the password to that address owns that piece of data.

An NFT can be bought and sold to different addresses and that data is verified on a blockchain. You can check the owner history, is always trackable.

It’s important to know what you are buying.

When you buy an NFT, you are buying a piece of data that points to a server that hosts that image.

You should know that the server could change the image, it can change the specific piece of data that you own on the blockchain.

So, what you own, is not the access to the server, and not the image itself, but rather that tiny piece of data that points to the server.