Non-Fungible Token (NFT) and How it works ?

~ Non-Fungible Token ~

NFT concept is based on Blockchain Technology. You understand that all the entries being done in blockchain technology, it means it is secured. If you are a creator of a unique photo and there is no photo like this are there in the whole world then you can sell it as NFT.Once the creator is registered and he will continue to get royalty whenever it is sold and it will have value addition.

Now, I explained it with examples. Just think, Elon Mask have two notes of 100$, exactly a 100$ note would be in your pocket. So, the note that Elon Mask have and the note you have, is of same value. Right, we can replace it and we can interchange it. It does not matter because the value is the same. Suppose Elon Mask have Zia on one side and Butt on other side. He give one note to Zia and another note to Butt. Now they both have 100$ and they have equal money. Now Zia says to Butt that give me your note , do the exchange, it does not matter. He also has 100$ and he also has 100$.

Now, Zia tells Elon Mask that Sir you are giving me 100$. I would like a favor, Please sign on this note and give it to me. Now, Suppose Elon Mask sign on this note with blue pen. Now, Butt speaks to Zia that brother do one thing and give me this signed note. Zia will say that I can not give it now. Butt say that take my 100$ note and exchange it.
Zia says no I can no longer exchange. Now, your note is same as the rest of the notes. It is fungible. But my note is Non-Fungible. There is not a single note in the whole world like this is only one note which has been signed by Elon Musk with blue pen. And it is with me then I will not give it to you. Now , I will sell this note for 5000$. It's value has increased. Now, Butt says that both are the same but here why it become non-fungible, do you understand. Because there was such a thing in it which increased its value.

You can do this with anything. You can add value to anything. Suppose you have an Apple phone and I also have an Apple phone. You do something new with that. You get gold plating in it, then whatever is your phone, it will become non-fungible, there is not a single phone in the world. This is the concept of Non-Fungible. I think you understand what is NF. Now attach token with it.

Now, I am explaining what the token is. Now, Zia says that I put photos of this note on the internet and I will make this into a token that I have an NFT, Anyone who wants to buy it can buy it. Similarly, Zia says that not only will I do this, I am also a graphic designer. I will make a graphic. I will make a GIF. I'll make a jpg, I will upload an image or I will put a video. He can say anything and I will tell them that it is non-fungible because GIF like this are not there in the whole world. He have made this. This is his NFT. Now where T is coming from, how this is becoming token. This is becoming token because blockchain technology is added here.

Now the concept of NFT here says that we will give additional benefits to the creator. What benefits will it give? You can sell your NFT here. If someone come out and bought something, you will get that money. But suppose that this buyer will sell this to as many people the next time. Suppose he sell it to ABC then the next time ABC sell to XYZ. How many times it will sell that many times the creator will get a royalty. Now you understand what he wants to say. The concept is that as many times it will sell that some thing he will get royalty again and again. If Sajid has sold a digital art for 60 million. Now he is calling this digital art as NFT. Now a person named Majid bought it here in fact. Now when he will sell it to someone then 10% royalty will go to the creator Sajid. Once the creator is registered and he will continue to get royalty whenever it is sold and it will have a value addition for every time.