NFT tokens are a solution created to allow us to represent objects with unique, irreplaceable and indivisible qualities within a blockchain.

Non-fungible or NFT tokens are one of the solutions that can be created on the blockchain tecnología. It also generated a lot of interest. But why this explosion of interest in NFTs? What are they exactly? What is its use?

In this article, we’ll answer all of that, starting with answering in detail what an NFT is and what makes it work in broad strokes.

Non-fungible tokens (NFT token), uniquely representing the world

First, we ought to understand exactly what a Non Fungible Token or NFT is. In this case, we can explain NFTs as follows:

A non-fungible token represents a cryptographic token that has the ability to be a unique and irreplaceable token. One that cannot be split but can be used to represent objects in the real or digital world with their own characteristics, as well as ownership thereof, while maintaining all of this in a representation on a blockchain through a smart contract.

This rather straightforward concept gives us a clear idea that NFTs, unlike the tokens we already know (also called fungible tokens), serve to represent single objects that are not divisible from their properties without signifying the destruction of this object, whether real or digital.

A good example of an NFT token would be a collectible. A digital card of a famous sports figure with a limited existence and with unique digital markings is a perfect example of an NFT digital token. Thus, the same thing happens if, for example, the card was real and we bring its properties to the digital world using a blockchain. In this case, the physical cards have a digital representation, but this representation would only serve to control the possession of the physical card, allowing us at all times to track its authenticity, who has had the card on previous occasions, and to check that it is the card we want.

But you will wonder at this point how is this possible? What makes NFTs work the way they do in a blockchain?

Smart contracts, the key to NFT tokens

The functioning of NFTs or non-fungible tokens depends on smart contracts or smart contracts. The job of these “programs” within the blockchain is to allow users to create these kinds of special tokens to represent with them whatever they want. Virtually anything can be represented digitally, and blockchain is perfect for that.

Let us remember that a smart contract is a small piece of programming within the blockchain, which allows us to indicate to the network that it stores the information that we indicate in a transaction. This way, we can access or interact with the information when we need it. All this without forgetting its main properties, that is, in an immutable and transparent way.

In this case, the programmer of a smart contract for an NFT token can create a program with the desired capabilities, with enormous creative freedom. So pretty much anything can also be stored in an NFT token if we have the smart contracts designed for that.

For example, an insurance company can create a blockchain insurance platform, which stores in an NFT the identity and permissions needed to access a policy for its customers. Advantage? Some user information may be readily available anywhere in the world, it can be easily verified, and tracking of policy usage is done transparently.

Another good example can be digital identity, which could also be represented by an NFT: each person has a unique identity, and a digital ID protected by a cryptographic NFT would allow us to have unique, irreplaceable and secure digital identities.

Of course, this is all possible thanks to blockchain and smart contracts, leaving us with another question: which platforms support the creation of NFTs? 

Platform for buying NFTs

Some of the most prominent lately are OpenSea, NiftyGateway, Rarible, Foundation, SuperRare, AtomicMarket, Async Art, Mintable, where you can buy NFTX tokens and many other NFT tokens interesting for the investors. The process of registration is quite simple. You can find on the internet many step-by-step guides through the buying and selling process.