Each entry in the chain is called a token

In an open blockchain, all tokens can be exchanged for identical ones, but in an NFT system, you cannot do that. If you have a bitcoin, for example, you can exchange it for another bitcoin identical to yours. NFT tokens are unique and cannot be swapped.

A clear diagram of the division into replaceable and non-fungible tokens. Non-fungible are non-substitutable goods, fungible are interchangeable, intangible are intangible, and tangible are tangible.

Thanks to these tokens, anyone can easily secure the rights to a unique digital object - a picture, a video, or an object in a game. In other words, NFT allows you to buy not the product itself but the ownership of it on the jupiterexchange.com platform by attaching a token with the data about the owner to the file.

Any artist who wants to attach a token to their work can use the OpenSea or Rarible platforms. Notably, OpenSea creates NFT tokens only after a buyer is found for them. In this case, the author does not have to pay a commission to the Ethereum blockchain. The Rarible platform, on the contrary, creates tokens immediately after uploading the work to the service and charges the author a commission.

Who uses NFT?

The technology can now work with many kinds of content - pictures, videos, animations, and even memes.

The South Carolina artist Mike Winkelman a.k.a. Beeple, about whom we mentioned above, put up at Christie's auction a huge collage of 5,000 digital images that he drew daily for 13 years. For the famous auction house sale of fully digital art was the first in the history of Christie's. On March 11, the college sold for a record 69 million dollars.

 Beeple's work entitled Everyday: The First 5,000 Days

NFT tokens are also actively used in games with in-game purchases to confirm ownership of virtual items - armor sets, weapons, buildings, and skins. This is primarily so that players can transfer items between their accounts, resell them, and use tokens to claim ownership.

Players do not have the copyright to these items, they are still in possession of the development company, but the NFT token confirms the absolute right of ownership within the system.