What is NFT in reality, how much deception it can hide, and in which areas it is really applicable

NFT is one of the most talked about topics in the crypto community, which has become so popular that it attracted a lot of attention outside it.

The only problem is that very few people know what NFT is and how it actually works.

It's time to shed some light on NFTs and dive deep into the details of how they work and how much deception there can be in the realm of NFTs.

The publication is based on an exclusive translation of the article: “ NFT Madness - What they are and what they are not. Why they're great, and why they suck ”for my Clawed Project telegram channel .

Let's start.

What is NFT really?

Everyone knows the analogy with collectibles. Unfortunately, this analogy is completely inadequate at best and clearly harmful at worst.

NFT (Non Fungible Tokens) as a term means that every digital token on the network is unique. Each token contains a small amount of data that is unique to a given token. That's all. They are just small containers of data that move around the blockchain between addresses.

Now NFTs on the Ethereum blockchain have a number of features that make them very popular. It is also likely that other networks will implement some or all of these features if they have not already been implemented.

1. The NFT creator address is stored as part of the NFT. Thus, information about the current owner of the NFT is public.

   
   
   
   
   

2. The royalty percentage can be set in the NFT token. When the NFT is then traded at any point in time between any two ETH addresses, the royalty from that “sale” will be redirected to the address of the token creator.

   
   
   
   
   

Now, before we go any further, it is important to understand one more aspect. NFTs are very, very small. Storing real data on the blockchain, even as small as a 64x64 jpg, is prohibitively expensive. Most NFTs will only store a few bytes of data. For example, serial number or URL.

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