NFTs, How Do They Work?
a day ago
- NFTs are like a Google Sheet: each project is a sheet, each NFT is a row with a name and an ID.
- The creator has special permissions; users can mint new tokens by paying a fee, getting a random unassigned ID.
- Once all tokens are minted, no more can be created; users can sell their tokens by changing the owner name in the row.
- The actual NFT is just an ID; the associated image or metadata is accessed via a URL that can be changed by the creator.
- The system runs on a blockchain (e.g., Ethereum) instead of a centralized sheet, but the core logic is similar.
- Caveats include smart contracts handling minting/selling, decentralization, and the high energy consumption of Ethereum.