NFT: What Is it and How does it Work?

NFT (Non-fungible token) is a non-fungible unique token that is “attached” to a single object, this object can be almost anything: a photograph, a picture, a GIF, a video, a music track, a video game character or any other digital content. It transfers the properties of rarity and scarcity to the blockchain and allows the creation of digital versions of collectibles. The very first example was the “CryptoKitties” game. In this game, virtual crypto cats are sold in the form of NFTs.

Each cat has its own unique number, 256-bit DNA and its own signs: coat color, eyes, clothing, and so on. In simple words, NFT is a unique token, or even more simply, a digital entry in the blockchain registry that gives you the right to own a unique object of the digital space.

What are the risks in the NFT

The NFT economy is growing rapidly. Along with this, the threats faced by NFT buyers and projects have increased, making them extremely fearful that all their investments will be diluted. An emerging threat they faced was Discord account hacking. Discord is an interactive forum where members can find all the information they need on a topic of interest, as well as jump into a detailed discussion. The NFT Discord is an interactive forum where artists, developers, and investors also communicate on current topics. 

Discord hackers – the main threat of the NFT. Hackers have learned how to bypass two-factor authentication and successfully hack discord accounts.

How exactly do discord hackers get their way? 

• The scammer targets a team member by infiltrating the server where the target member resides.
• The scammer impersonates the target member, prompting Discord to ban them.
• After the ban, the scammer addresses the banned team member, posing as a mod.
• A scammer asks a banned team member to prove his innocence.
• The participant is then asked to reveal their verification element, which has all the information the scammers need to take full control of the target’s account.

How to create an NFT token

• You will need an OpenSea site. In the upper right corner you will find the “Create” tab, select Submit NFTs.
• At this stage, create your personal account, which will contain your NFT. Then click Create a new collection. Add a title. Optionally, you can also add a logo and describe your collection.
• The next item on the platform will prompt you to sign a user agreement. Accept the terms and proceed.
• Upload the file you want to make a token from. Anything is suitable for this, whether it’s a picture drawn in Paint or a photo of your cat. Don’t forget to add the name of the token.
• Almost done! It remains to wait for the NFT verification, it may take several days. After verification, you can sell your creation.

Who is NFT for?

Basically, NFT is needed by creative people: musicians, artists, photographers, website developers to digitize their work, secure copyrights and protect themselves from data theft. Yes, and make money on your creativity.  NFT is a great option for art connoisseurs and collectors. For those who care about having unique objects, even in digital form.  

Like cryptocurrency, NFTs are created on a blockchain, which acts as a database for recording all transactions. Blockchain guarantees the authenticity of non-fungible tokens. Thanks to this system, any user can verify the original and history of a particular NFT through the blockchain. In general, for creative people, NFT is a way to monetize their skills and expand their audience. Due to the lack of logistics difficulties, it is easier to sell artworks digitally than offline. 

The uniqueness lies in the format and technology – you can fix the authorship. And since the tokens are stored in an open and distributed blockchain, information about this product, about its owner and the history of operations with this product is always available and reliable. When it comes to game items, they can be owned, sold, gifted and used in games. At the same time, you do not depend on the developers and no one can take away your items from you.