Hello friends , greetings from myside in the season 2 and week 4 of Steemit engagement challange . Today I choose to write homework task set by cryptoacademy which is about NFTs.

Using your own words to define non-fungible tokens: NFT, and to show the difference between fungible and non-fungible tokens.

Non-fungible token is a unique, non interchangeable and non tangible digital code recorded on blockchain that represent some underlying art work , audio , vedio or photograph etc . NFTs are similar to cryptocurrencies in a way that they can be traded or used for investment purposes but cryptocuremcies are fungible . NFTs are a sort of intellectual property where ownership and copy right laws are different from ohsycial property. A buyer of an NFT is certified as being an owner but may not necessarily confer copy right issues .

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Difference between fungible and Non-fungible token

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• NfTs are not replicable and are not interchangeable where as fungible tokens are replicable and interchangeable. For example, a BTC is a fungible token as it can be replaced for other BTC or other asset or good of same value . On the other hand , an artwork being NFT cannot be replaced or interchanged . Although it may be duplicated but the uniqueness is lost because the duplicated NFT is not same as original NFT.

• Fungible tokens are divisible like a BTC burrowed from someone can be paid back in fractions and at the end collective value will be same . Divisibility of Non-fungible tokens is not possible.

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Difference between fungible and other currencies.

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• NFTs are digital representation of some underlying art work or asset where as other currencies standalone and have their value of own .

• NFTs don't have their intrinsic value instead they derrive their value from underlying asset . Other currencies have their intrinsic value .

• NFTS are non-interchangeable , non-divisible and unique where as currencies are vice versa in terms of above features .

Is there an NFT marketplace? And how to invest in NFTs?

NFTs have gained so much popularity in last half a decade that various marketplaces have come into existence. For the sake of this task , some examples are Opensea , Mintable , SuperRaee and Rarible etc . Of the above mentioned marketplacee , Opensea is a comprehensive market where all the operations of NFTS are possible.

As for investing is concerned , just like crypto or stock investment , fundamental analysis lies at heart of investment . Look for the team behind NFT , purpose of NFT, future of NFT, Utility of NFT , on/off chains status etc. Once you are satisfied only than think of making investment . You should keep in mind that the boom In NFTs seen during 2017 has faded in 2022 but craze of NFTs is still alive . So it can be correlated to the changes in crypto market .

Once done with analysis , choose the compatible wallet through which you can interact with the market place . Fund your wallet like Meramsk , trust wallet with Etherium . Most of NFTs are bought/ Sold via Etherium.

Register on the NFT market through credentials asked there and begin purchase of NFTs easily.

How to create a new NFT and is it possible to have an NFT stolen? And why use a distributed file system like IPFS in this area?

Steps to create a new NFT .

• Create a wallet compatible with NFT Market place .

• I'll proceed with Metamask wallet and opensea NFT Market place .

• Open your metamask Wallet , on the main page of wallet , click on top left corner . A drop down down menu will appear. Find an option browser.

• Click on browser and next we got to see many options . Click on Art and Collectibles.

• A list of Art and Collectibles website will open . Look for opensea and click on it .

• On the main page of Opensea , click on create .

• Next it will ask for wallet with a lot of wallets .

• As i have Metamsk , click on same . A notification will pop up seeking permission to connect in the wallet, click on agree.

• Next select the NFT type like audio ,vedio etc and fill the details like name , description , link etc and proceed .

• Click on create and you are done .

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As for theft of NFTs is concerned , i would say that it is possible to lose NfTs at the hands of hackers . I belive with the growing security measures to safe guard online assets , hackers are also making use of advanced tactics to corrupt the security systems . So NFTs csn be stolen and have been stolen in past.

IPFS, which stands for InterPlanetary File System, is a web based decentralized file storage , sharing and retrieving protocol aimed to ensure secure storage and quick retrieval and sharing of data. IPFS works by fractionating of uploaded data and assigning a unique cryptographica hash to each portion of it. Multiple nodes are involved into this protocol and each node stores cached copy of data independently and stherby create a secure system of data storage besides being quick while retrieving and sharing data .

How are NFTs used in art, video games and collectible card games? And how are NFTs revolutionizing property titles?

Use of NFTs in art , vedio games and collectibles have revolutionised these fiields by digitalifing these fields . Art is taking a new form of being immortal through NFTs . NFT Gaming has revolutionised the life of gamers by creating a value for time by monetising them besides being adventurous .

NFTs are revolutionsing property titles by giving a new insight to owners . Audio , vedios and arts which were earlier a form of transient memorable incident in owners lives have taken a digital form in the form NFTs . The inherent features on NFTs like uniquenes , non- interchangeablity , legal rights conferred onto the art works and collectibles through NFTs ia althogehter a new experience for owners .

How are NFTs regulated? And what are the solutions to the limits of NFT development?

There are no separate laws governing NFTs as they are yet to gain any legal status in most of the nations. As for our country is concerned, there are no separate laws for NFTs but they are liable to be governed by cryptocurrencies regulation bill of 2021 and indian contract act. Sale and resale of NFTs are to be treated as contracts and buyer and seller terms are likely to be governed by contract laws. Same holds true for royality payments as well.

The solutions to the limit of NFT development must be directed towards limitations. For example, energy consumption issue can be tackles by shifting to other consensus algos like PoS. Similarly, storage to avoid hacking etc can be tackled on same lines as that of cryptos. A solution to a higher gas fee on Etherium-compatible blockchains has been solved to a great extent by non-etheriun blockchains. Regulations to control the pricing of NFTs can be considered as there are no uniform standards to regulattheth the pricing of NFTs

Conclusion

Since the launch of first NFT Quantum by Kevin McCoy and Anil Dash in May 2014 , NFTs have gained huge fame and people have earned millions . To start from an art , NFTs have gradually widened in horizons like audio , vedio , art and gaming etc .