What is this NFT Everyone is Talking About all the Time?

What is NFT?

NFT is a special type of virtual asset.

To better explain NFT, let's take a NIS 100 bill as an example. If I give you a NIS 100 bill and you return another NIS 100 bill to me, none of us will feel that he has lost or gained anything. In other words, you can switch between these banknotes and what matters is their value (20 NIS, 50 NIS, 100 NIS, 200 NIS), and not the physical banknotes themselves.

Even in the case of Bitcoin, which is a "virtual currency" that works on blockchain technology, the value of Bitcoin is what matters. Each bitcoin is not unique compared to another bitcoin. At some point there will be 21 million complete bitcoin coins, which are interchangeable just as banknotes are interchangeable.

On the other hand, if a NIS 100 bill is signed by the President of the United States, it can be said that a NIS 100 bill will have a value that other NIS 100 bills will not have.

NFT is similar. This is a unique digital asset and there are no other specific NFTs like it. It is issued only once, and there is no other such specific NFT.

NFT is an abbreviation for non-fungible token - that is, a "token" that cannot be replaced by another "token". The word "token" means an asset that is based on blockchain technology, with a function similar to Bitcoin. If so, in simple words, as opposed to a 100 note, one NFT cannot be exchanged for another.

What is the use of NFT?
NFT is used to store digital art online, and also to verify the originality of a particular work. Each NFT has a history of who owned it in the past, and also who created it in the first place - the artist.

For example, it could be a unique image, or it could be recorded music.

The most popular NFTs right now include artwork and music, but can also include videos.

Is it possible to copy the works that are stored as NFT?
Of course, the work stored as an NFT can be copied, but the original work (the NFT itself) will always remain original and its originality can always be verified, since the use of blockchain technology does not allow the forgery of that NFT. Keep in mind that when you go to a museum and see the painting of the "Mona Lisa", you can always take out your phone and take a picture. But the original work will remain original because of its uniqueness - a uniqueness that can not be replicated in any way.