What is NFT and Why is it trending in the crypto market.

What is NFT and Why is it trending in the crypto market ?

Non-fungible tokens(NFT) are the tokens that are used to represent the ownership of unique items. They let us tokenize things like art,game assets, even real estate. NFT has only one owner at a time and they're secured by the Ethereum blockchain and no one can modify the record of ownership NFT.

NFT is also used to describe things like your furniture, an image file etc. And these things are not interchangeable for other items because each item has their own unique properties.

How do NFTs work?

NFT tokens are different from ERC-20 tokens, such as Tether or USD,and each NFT token is completely unique and is not divisible. NFTs give the ability to claim ownership of any unique items of digital data. We can also track it on Ethereum's blockchain as a public ledger. An NFT can be used for representation of digital or non-digital assets. For example, an NFT could represent digital art and real world items also eg: GIFs,Music,Tickets of a movie etc.

NFTs are minted through smart contracts which are written in solidity and that smart contract assigns ownership and manages the transferability of the NFT's. When someone creates or an NFT, they execute code of smart contracts that conform to different standards such as ERC-721 and written in solidity which is supported by ethereum you can execute or run that smart contract on Remix IDE. The minting process has the following steps that it goes through:

• Creating a new block
• Validating information
• Recording information into the blockchain

NFT's have some special properties:

• Each NFT token minted has a unique value or properties  which is directly linked to one Ethereum address.
• NFTs are not directly interchangeable with other items or tokens.
• Each token has an unique owner and his information is easily verifiable.
• NFTs are digitally unique and two NFTs can not be the same.

What are NFTs used for?

NFT are also used for different purposes given below:

• Digital content
• Gaming items
• Domain names
• Physical items
• Investments and collateral

Future of gaming can be that people will use crypto as a payment method. And also use NFT to create assets for the game like a sword or shield which each player can buy using NFT and that asset will assign to that specific user with a unique id of the asset. NFTs are also used for gaming equipments like a fighting game containing guns,armor, shield and hammer etc so these items are also bought using NFT tokens.

Conclusion:

In the coming years NFT will take over the digital and crypto market, people will create their own NFT for their items and sell them at a high price also. As people are more aware about crypto currencies and the crypto market, the market of NFT will also rise with a greate spike in future.