What are on-chain NFTS & off-chain NFTS?

On-chain NFTs refer to tokens written solely on the blockchain, with all metadata and smart contracts being stored on-chain. On the other hand, off-chain NFTs store their smart contracts on the blockchain, though their media is stored off-chain. Both methods have their pros and cons, though on-chain NFTs are the trending option in the industry.

What is a non fungible token (NFT)?

Non-fungible tokens (NFTs) are digital or physical assets recorded on the blockchain. They can be sent from one individual to another, used in video games, or held in cryptocurrency wallets as an asset. On-chain NFTs refer to tokens written solely on the blockchain, with all metadata and smart contracts being stored on-chain.

What is an NFT & what does it stand for?

You may first be wondering what is an NFT and what does it stand for. It stands for non-fungible token. What this means is that it can’t be replaced with anything else and that it’s unique. They are also verified and stored using blockchain technology. You can think of it as having an element that’s one-of-a-kind.

What is the difference between NFT and cryptocurrency?

Although cryptocurrency and NFTs rely on the same type of blockchain technology, they’re created and used for different purposes. NFTs are essentially crypto assets that contain a unique certificate of authenticity which makes them rare and high-value digital assets. How does an NFT work?