To get started with NFTs, here are some main concepts you need to understand.
A blockchain is essentially a digital ledger of transactions that is duplicated and distributed across the entire network of computer systems on the blockchain. It is basically a new method of storing data. It is an extremely secure and decentralized solution that leverages many new technologies such as digital signature, cryptographic hash functions amongst many. These are the same core concepts that enable emails and the internet to function as well.
Every action on the blockchain is stored and recorded as a transaction (TX) and publicly available. These actions can range from creating NFTs, sending NFTs, staking, redeeming rewards, swaps, and many more. Websites such as Etherscan and BSCscan allow the public to access and view these transactions and display important information such as who, what, where, and when the transaction took place. Each TX has a unique ID (TXID) and you can always search and refer back to view all these actions.
In blockchain, people/parties are represented by a unique blockchain address. Every transaction must specify the parties involved stating from who and to whom the transaction was executed. The blockchain addresses are contained within wallets. Providing someone with your public address or public key will allow other people to send assets to you.
A non-fungible token (NFT) as its namesake suggests, is a digital asset that is unique. Physical money and most cryptocurrencies are 'fungible' meaning they can be traded or exchanged for one another. NFTs have a unique identifying code therefore this technology allows them to verify the asset associated with this token is unique. That is why it has been used as digital art, collectibles, virtual reality items, crypto domain names, ownership records for physical assets, and more. They function as verifiable proof of authenticity and ownership within a blockchain network. NFTs are not interchangeable with each other and represents scarcity in the digital world. Here at FUFU we believe NFT technology has many utility apart from the collectible aspect and we look to deploy these utility packed NFTs across the ecosystem.
As the NFT industry grows, we are seeing many innovative applications and use cases. This is increasing the need of interoperability, which basically means digital assets can be easily transferred and used on multiple platforms and marketplaces. This allows the NFTs to have versatile functions. Interoperability is another area that FUFU is very keen on implementing in our ecosystem along with our partners and brands who issue NFTs as well as tokens, we want the users to enjoy functionality and utility across multiple platforms further enhancing the value of the NFT.