What is NFTs (Non-fungible tokens)?
Non-fungible tokens or NFTs are cryptographic assets on blockchain with unique identification codes and metadata that differentiate them from the other. Unlike cryptocurrencies, they cannot be traded or exchanged at equivalency. This differs from fungible tokens like cryptocurrencies, which are identical to each other and, therefore, can be used as a medium for commercial transactions.
Why is NFT important?
The "non-fungible" part of the name means they are not mutually interchangeable and cannot be replaced or exchanged with one another. No two NFTs are alike. That sets them apart from fungible “tokens” such as cryptocurrency (and even traditional currency) that can be exchanged for one another.
A non-fungible token is certified on the blockchain (the same technology that ensures the security of cryptocurrencies like Bitcoin), and whoever owns the NFT is deemed the original owner of the asset.
The distinct construction of each NFT has the potential for several use cases. For example, they are an ideal vehicle to digitally represent physical assets like real estate, car and artwork. Because they are based on blockchains, NFTs can also be used to remove intermediaries and connect artists with audiences or for identity management. NFTs can remove intermediaries, simplify transactions, and create new markets.
NFT and asset verification on Vugo App
The majority of NFTs reside on the Ethereum cryptocurrency’s blockchain. Similar to Bitcoin, Ethereum's blockchain creates permanent digital records of all transactions using that cryptocurrency. And it also creates an irrefutable ledger of NFT transactions.
The creator of the NFT retains the copyright for it, as well as the right to duplicate it as many times as they want. The creator may produce multiple copies of the original – and if the buyer of the NFT wants to make copies, they need to get permission from the creator – and each is considered a unique NFT.
With Vugo platform, each car has been validated on Vugo is one NFT on Blockchain as well
The automobile identity verification also means that each NFT is created and belongs to Welups cryptocurrency’s blockchain. These NFTs are equivalent such as vehicle’s documents and its related ones.
NFTs are also created for each Vugo’s car in order to export, distribute and put into circulation by producers. On the other hands, these NFTs are used for trading, management and its operation history is saved to Welups blockchain, IDShare and Vugo as well.