What's The Difference Between NFT and Cryptocurrency? A Beginner's Guide

TheIndonesia.id - NFT has gone viral on social media lately as a transactional tool to buy artwork. NFT stands for Non-fungible Token. It becomes a trend and a conversation in the United States.

One of the things that made NFT go viral was the work entitled 'Everydays-The First 5000 Days' which was sold at US$ 69,346,250 through Christie's auction house. The work was created by a US artist Mike Winkelmann, known as Beeple. The work is a photo collage of 5,000 individual images created one by one every day for 13 years.

NFTs vs Crypto

According to various sources, NFT is actually a digital token, linked to a large blockchain system. Its function is not much different from cryptocurrency assets. However, NFT cannot be exchanged. It can only be traded. In short, NFT is also known as a certificate of ownership of an item such as a work of art in a digital forum.

Hence, NFTs are used to buy and sell works of art. In digital transactions related to this work of art, the main attraction is the NF, as a sign of ownership of the work of art.

Another example of work that can be sold with NFTs is a tee from the founder of Twitter, Jack Dorsey. He was able to sell his first tweet using NFT. Even billionaire Mark Cuban also tried NFT to sell his motivational quotes on the internet.

Items that can be sold with NFT

Items or objects that can be sold with NFT can vary. The shape varies according to what object the owner will sell with the embedded NFT. 

Therefore, objects with NFT can be collections of works of art or physical objects. For example, if an artist embeds an NFT on his painting, then he can set a price for each NFT that is traded.