10 What are Non-Fungible Token (NFT) Systems?

Introduction

Non-Fungible Tokens-NFTs have taken the metaphysical world by storm, introducing a new dimension to the concept of intellectual property and a technological revolution for modern digital concepts.

Non-fungible tokens, often referred to as NFTs are tokens based on Blockchain technologies, the code of which cannot be exchanged for anything else. Each of its various units represents a unique asset, such as pieces of paintings, artistic clips, or any digital content that can be expressed or represented digitally. This is why an NFT is considered a certificate for the acquisition and trading of virtual digital property, but it is revocable, whether it is a digital or physical asset.

That is, NFTs represent unique digital assets, from owning plots of land and virtual real estate to items and tools within gaming communities, allowing users to own them in their digital form or state. These tokens, which are often based on the altruists' currency Ethereum, and many other types of cryptocurrencies contribute to the metaverse.

 Characteristics of Non-Fungible Tokens (NFTs)?

Non-fungible tokens (NFTs) are encrypted tokens that allow you to own or prove the ownership and authenticity of an item, that is unique or distinct in its characteristics, such as digital art paintings or some collectible assets. Rare character As mentioned above, some of the main characteristics of non-fungible tokens (NFTs) are that they.

• NFTs are unique and are not interchangeable or replaceable in origin with other codes or codes. It can only be transacted or traded in digital currencies such as Ethereum and Bitcoin.
• NFTs are used to uniquely identify digital assets, meaning they have different values based on various attributes. Each symbol is only identical to what it refers to.
• NFT symbols allow the possibility of proving ownership of assets, based on the identifying information recorded in smart contracts for each physical or moral asset. Contracts are public and verifiable.
• NFTs represent digital ownership of assets such as digital art products, heritage and historical artifacts, music and video clips, etc. The digital asset is linked through NFT using unique encrypted signatures.
• NFT codes allow original digital works and objects to be distinguished from imitations or replicas, making it difficult to sell them like physical assets that carry a unique identity that serves as a certificate of authenticity and proof of ownership.
• NFT transactions on the blockchain are recorded publicly. This is why all NFT transfers and trades are traceable, which enhances authenticity and auditability. because one of the characteristics of blockchain technology is that its ownership data is confidential, safe from tampering, and easy to verify.

 In short, NFTs are used to create digital scarcity, because they take advantage of the advantages and characteristics of the technology. Blockchain, because its encrypted codes and transactions are secure if used or used to determine the unique identity of digital assets, is therefore non-fungible. In 2020, the volume of NFT transactions reached $250 million, and in the first week of 2021, it jumped to $500 million.

Types of non-fungible tokens?

 Innovative intellectual works, such as the texts of blog posts and tweets, may come within the holdings of non-fungible token systems (NFTs), or in the form of legal rights such as ownership of virtual land plots, where the function of NFTs is the virtual entity that provides benefits for registering assets in virtual intellectual property systems, after Displaying and presenting it in its digital form or preparing it virtually.

 NFTs have gained popularity in recent years, attracting the attention of artists, collectors, investors, and even mainstream media. However, it should be noted that the NFT space is still developing, like the metaverse, and there are ongoing discussions in the world, about how sustainable it is, virtual ownership copyright issues, the extent of its contribution to the global economy, and towards stabilizing market fluctuations.

Unlike encrypted digital currencies such as Bitcoin or Ethereum, and other digital currencies, as well as real currencies, goods, and products in normal life, which can be exchanged and their ownership changed, or buying and selling operations carried out in them, depending on a basic basis that enables transfers from one person to another; That is: one-to-one.

However, the idea of ​​NFTs is based on how they implement their functional message; It is a set of characteristics that are unique to it, in contrast to the previous characteristics of human nature, because it is unique and indivisible or replaceable. Only in it is the transfer of ownership of some virtual goods and products, which we mentioned a moment ago, or those that are usually traded in metaverse communities.

 It requires the transfer and exchange of goods and products between natural persons dealing with a system. Non-fungible tokens (NFTs), or legal or virtual characters (Avatars) within the platform and communities of the world of the metaverse, a digital currency with which transactions are conducted and which is often the digital currency Ethereum.

Conducting transfer and exchange operations for goods and products between natural persons dealing with the system of non-fungible tokens (NFTs), or legal or virtual personalities (Avatars) within the metaverse world platform and communities, requires a digital currency in which transactions are conducted, which is often the digital currency Ethereum.

 As we previously mentioned, NFTs are managed through the Ethereum blockchain technology, so that the intellectual property of all items that carry an NFT symbol is registered, as in the case of using smart contracts available in BlockChain technology, where the transaction history of the NFTs symbols can be managed. NFTs through a decentralized public ledger, with complete transparency, which is why NFT systems consist of several main components.

Types of Digital Contracts and Transaction Management?

NFTs represent a wide range of digital assets, including works of art, music, videos for any creative content, items of an anomalous nature, gaming assets, site communities, niche clubs, virtual social media accounts, and other activities within Virtual environments of the metaverse world. These assets are often created by artists, innovators, creators, developers, and some companies and interested parties who represent a party that owns the NFTs system.

Ownership and Transfer

To ensure the verifiability of the transfer of assets between beneficiaries, the asset must be identifiable, unique, and owned by a specific address on the blockchain system. Ownership of assets is transferred by initiating a transaction in the chain’s database, updating ownership records, and transferring the token from a wallet. To another, or from one person to another

 Smart Contracts

Assets in NFTs are typically created and managed through smart contracts, which are terms and conditions of self-executing agreements, with pre-defined control rules, encoded on blockchain platforms. Smart contracts define how behavioral characteristics and practices that NFTs have or provide, such as the intellectual property itself, the transferability of the assets from one owner to another, the fees brokerages charge for registrations, in addition to other specific minimum features of the trading items.

Mining Assets

Just as the manufacture and generation of currencies is called currency minting operations, NFTS tokens and ciphers are also created through special processes that can be referred to as minting elements of virtual digital assets, for registering them in the same ways as known legitimate methods, and then conducting trading operations in them, through next procedures.

• Attaching the asset to a specific smart contract.
• Designing a token and unique associated with the asset.
• Creating the token for each asset in the NFTS
• Determining the virtual value corresponding to the asset can be issued according to the platform's criteria for issuing the digital currency.
• Preparing and publishing metadata describing the asset's characteristics and source.

 Managing the operations of buying and selling assets

Non-fungible tokens (NFTs) systems carry out trading and transactions for offering, selling, and buying assets on online markets. They also provide asset buying and selling management, fee and licensing services, in exchange for ownership registration and licensing of digital assets. By automatically determining and calculating a percentage of the sale price, in addition to verifying the salient features and characteristics of assets owned by their owners, via automatic smart contract systems.