This is one of the most interesting topics so far, it’s so captivating.
first and foremost, before getting deeper to know what tokenized NFt is, it’s ideal to familiarize with what token, NFT, and tokenization are exclusive.
Meaning of Token
Token here in cryptocurrency is referring to a virtual currency token or a denomination of a cryptocurrency. It illustrates a tradable asset or utility that resides on the blockchain
it allows the holder to utilize it for enterprise or economic goals or purposes.
Meaning of NFT
NFT here is an acronym which stands for non-fungible token
Note that the word non-fungible means it cannot be exchanged for another neither can it be copied.
NFTs has been in a existence for the past couple of years right before
Ethereum and Bitcoin came into play
It’s simply a a unique digital asset that lives on the blockchain network and it’s used to indicate ownership.
These are some of the types of NFTs
1. Music
2. Gifs
3. Tweets
4. Games
5. Paintings/drawings
6. Videos
Different NFTs has a special digital code stored in a smart contract, which helps to prevent or deter it from being exchange with some other or totally different thing. These code build-up helps to provide confirmation of ownership of an NFT. Truly NFTs has more effective ways to purchase and trade on the Ethereum Blockchain network than others. And
Most people prefer digital assets to real items.
NFTs are generally stored on a blockchain, which is a digital file to help keeps records of all transactions.
Customers and sellers uses this to check who has owned a particular NFT.
Let’s take a brief look at the meaning of tokenization
Tokenization is the act of separating a progression of strings into parts which includes symbols keywords, phrases, symbols, and other elements called tokens. Tokens can be individual words, phrases, or even whole sentences.
Tokenization is truly a form of encryption for for sensitive data.
Notwithstanding further delay
These should be our basic concerns, I know most people still find it new and and it has raised more questions than answers in the past and even presently.
How did tokenization come about
The digital tokenization was invented in the year 2001 by Trust commerce to serve as a security for their customer’s credit card
The system was created with random numbers known as tokens
How does a tokenized NFT work?, Or rather how does tokenization works;
Here’s the answer
Through tokenization, you can simply make a digital photo of the asset using blockchain technology. Remember this can serve as crowd-sourcing for other new or ambitious artists and at the same time, it will encourage further management over incoming expenditures it also works as a data security method or technique which has to do with the exchange of sensitive data to the non-sensitive ones called the token.
Now let’s quickly look at the examples of this sensitive data;
1. Social security numbers (SSN)
2. Drivers license Numbers
3. Personally identifiable information (PII) ( these include phone numbers, date of birth, and bank info).
4. Medical information.
5. Visa information.
6. Email addresses Etc.
Tokens are generally made up of codes and randomly generated numbers which do not have values.
With tokenization your sensitive data’s are protected from
Cyber invasions, it doesn’t matter the kind of business you’re running, your sensitive data can be safely managed from the attacks.
Tokens are also unique to each Value.
Benefits of Tokenization
*Tokenization helps to to reduce risks of data attacks by safeguarding sensitive data.
*It helps to boost buyer’s Trust for the sellers.
It’s uses fewer resources than others, and there’s less chance of failure it.
*It allows one to freely store and trade the tokens
