INTRODUCTION: Good day Steemians, trust your day went well. I welcome us to the fourth day of week 4 season 2 and I wish us the best of luck in the contest.

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

What are non -fungible tokens?

Non-fungible tokens(NFTs) are digital assets that represent real-world objects such as art, music, in-game items, videos, or anything that can be digitized. They are digital in the sense that they are bought and sold digitally (online) most times using cryptocurrencies.

NFTs are units of data that represent unique or non-replicable assets that are stored and verified on the blockchain and which can be traded on digital markets. They function or are built just like cryptocurrencies but they are not mutually interchangeable like cryptocurrencies

What are the difference between fungible and non-fungible tokens

Their differences could be categorized based on their main features, real-life purpose, the technology used, etc. All these we are going to see one by one.

📌 In terms of main features

The following are the differences between fungible tokens and non-fungible tokens

Fungible tokens	Non-fungible tokens
Fungible tokens are divisible	Non-fungible tokens are not divisible
Fungible tokens are not unique	Non-fungible tokens are unique
Fungible token can be traded or exchanged for one another	Non-fungible tokens are not interchangeable

📌 In terms of real-life purpose

The following are the differences between fungible tokens and non-fungible tokens

Fungible tokens	Non-fungible tokens
Fungible tokens are used for storing value.	Non-fungible tokens are used for representing assets like stocks, shares.
Fungible tokens are used as payment system	Non-fungible tokens are used for representing intellectual property, Artwork, music composition, Gaming, etc.,

📌 In terms of technology used

The following are the differences between fungible tokens and non-fungible tokens

Fungible tokens	Non-fungible tokens
Fungible tokens are are built on its own blockchain.	Non-fungible tokens are built on another blockchain
Example of fungible tokens include Bitcoin, Ethereum, Steem	Example of non-fungible tokens include Beeple, Nyan Cat, Furniture NFTs

📌 In terms of content stored

The following are the differences between fungible tokens and non-fungible tokens

Fungible tokens	Non-fungible tokens
Fungible tokens store value	Non-fungible tokens store data

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Are NFTs interchangeable? What are the differences between an NFT and other currencies? Is there an NFT marketplace? And how to invest in NFTs?

Are NFTs interchangeable?

NFTs are not interchangeable as each NFT is unique and cannot be replicated. However, they can be traded. Since they cannot be replicated then they cannot be exchanged with one another.

Also, the word fungible tends to mean interchangeable while non-fungible means non-interchangeable.

What are the differences between an NFT and other currencies?

The only similarity between NFTs and cryptocurrencies is that they are both built on the blockchain and apart from this, they have nothing in common.

The main difference is that NFTs are not interchangeable i.e., an NFT cannot be exchanged for another NFT as they are unique and valued differently while other currencies are interchangeable or fungible i.e., One Steem equals another Steem and so can be interchanged.

Is there an NFT marketplace?

Now that we already know that NFTs cannot be interchanged but can only be traded, then, there should be a place to trade them and so, there are NFTs marketplaces and not just one marketplace. There are various marketplaces where NFT can be traded out there but I am going to mention some top ones here.

• OpenSea: OpenSea Market is the leader in NFTs sales for some reasons. The marketplace provides or has numerous digital assets available on the platform, signing up on the platform is free, creating or minting one’s NFT process is easy on the platform and lastly, the platform supports over 150 different payment tokens.

• Axie Marketplace: This is the online shop for the video game Axie infinity. In this shop, players can buy new Axies, lands, or other items as NFTs which will be used in the game.

• Rarible: This is also a large marketplace just like OpenSea from which all kinds of art, videos, and collectibles can be traded on. One can buy, sell or create all sorts of NFTs using the marketplace's token which is known as Rarible. This marketplace is built on the Ethereum blockchain.

• SuperRare: This is also a marketplace in which all sorts of NFTs can be bought and sold. Here, the trading is done using Ethereum.

Some other marketplace includes, Foundation, Nifty Gateway, Mintable, Theta Drop, Larva labs, etc.

How to invest in NFTs?

To invest in NFTS, three main steps must be taken.

📌 Researching on Available NFTs: The first step is to make some research on available NFTs: I believe this should be the first step that should be taken by any to be NFTs investor. One should be able to search and choose an NFT that has potential. You can make use of sites like Rarity. tools or NFTcatcher.io to search for upcoming Ethereum and Solana NFTs.

You need to check the cryptocurrency that can be used to buy the NFT, and how many of the NFT were minted all these will help you understand how scarce is the NFT you are trying to invest in.

While making your research, there are some things you must always look out for

• You need to know the team behind the NFT, are they reputable and can they help drive the value of the NFT up.

• You need to be sure if the NFT is on-chain or off-chain and this is because off-chain makes use of a centralized server and if the server should go down, then one might lose the image too.

📌 Selecting an Exchange: The next step is select an Exchange or a brokerage: Having make your research about the NFT, the next thing is to choose an exchange where you can buy the cryptocurrency that can be used to buy the NFT. Make sure you review the transaction fee so you can estimate how much you will be spending.

When choosing an Exchange, there are some things that you must also put in mind or look out for.

📌 Selecting a Marketplace: The last step is to select a marketplace and just as explained earlier, NFTs are not interchangeable but can be traded. To buy an NFT, you will have to select a marketplace based on your preference and then make the transaction.

Also, we need to have in mind that NFTs are stored in a crypto wallet on either the same blockchain or a different blockchain and so one must have this wallet. Examples of crypto wallet includes Trust Wallet, MetaMask, Alpha Wallet, etc.

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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?

How to create a new NFT

To create an NFT, there are six (6) steps to take and they are the following

Choosing your unique asset:

The first thing one has to do is to determine or select the unique digital asset that he or she wants to turn into an NFT. This asset could be an art, a picture, music, video, meme, GIF, and so on. Do not forget an NFT is a unique digital item and so, one must make sure one has the intellectual property right to the item so as not to get into trouble.

Choosing the Blockchain to use:

Having selected the items to use, then one can begin with the minting process and what should be done next is to select the blockchain technology that one wants to use.

Setting up a wallet:

The next step is to set up a wallet that you will use to get the cryptocurrency that will be needed to create or mint your NFT and also it is the wallet that will enable you to have access to your NFT or digital assets. Keep in mind that the fees to mint successfully might include the NFT minting fee, commission on the sale, and transaction fee and these fees can also fluctuate.

Selecting your NFT marketplace:

The next step to take having gotten some cryptocurrencies in your wallet is to select the NFT marketplace where you will be able to create or even sell your NFT. Don’t forget those things I mentioned earlier that you must look out for whenever you are selecting an NFT marketplace.

On selecting your NFT marketplace, you will have to connect your already set up digital wallet to the marketplace as it is from the wallet that you will pay the necessary fees to create or mint your NFT.

Creating your NFT:

On connecting your digital wallet to your selected NFT wallet, then you are finally ready to create your NFT. Now, Each NFT marketplace has its way or process of uploading your digital file to its platform, so I will advise you to read their step-by-step guide for doing so. It is in this process that your digital file will be converted into a marketable NFT.

With this, you have successfully created or minted your NFT. But is that all? NO, there is one last step.

Setting up a sales process:

The final step to take is to set up the sales process, I am sure you didn’t just mint your NFT just to be glaring at it but to sell it and this is why the step is important. Setting up the sales process also depends on each NFT marketplace, you can:

• Sell at a fixed price where the first person that is ready to pay your fixed price will buy you NFT.

• A timed auction can be set where people interested in your NFT will be timed to put forward their final bid and the person with the highest bid buy your NFT. Keep in mind that whenever you are auctioning your NFT, you will have to set a starting or minimum price.

• Also, an unlimited auction can be set, unlimited in the sense that there is no time limit and it is you the creator of the NFT that will decide on when to end the auction.

These are all you need to create your NFT but there is one thing that you still can do for maximum benefits, which is to set your royalties which will enable you to continue to cash in on your NFT whenever it is being resold.

Before I proceed, let me quickly demonstrate how to create an NFT. I will be using the OpenSea marketplace.

• I go to OpenSea

• I clicked on create as can be seen in the image below

• I selected the wallet type I want to use.

• I connected my wallet in two steps as can be seen in the two images below.

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• I imported a picture, fill the necessary form, selected the blockchain network I want to use and then clicked on create as can be seen in the fous picture below.

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• Below is the image that depicts the complete creation of my NFT which I can now proceed to sell.

Is it possible to have an NFT stolen?

Well, my answer will be YES. Just as one’s digital assets such as cryptocurrencies are stolen from digital wallets and exchanges, NFT can also be stolen in the same way.

I should put it to us it isn’t on the underlying blockchain where the NFT is created that the hacking occurs, we all know that the blockchain technology cannot be hacked but the hackers tend to target the digital platforms, services, and networks where the NFT owners make use of to purchase, trade or store their NFT.

Why use a distributed file system like IPFS in this area?

To understand the reason why IPFS is used, let's take a look at some things.

What do you think you get whenever you purchase an NFT? Well, the answer is that you own a unique token on a blockchain network that points to or references some off-chain data. This token is non-fungible as well as immutable for the fact that it is on the blockchain and this is all NFT guarantee. But there are two main challenges around this,

• The first is that an NFT is just as good as the link to its data and that the reference is just a line of code and an HTTP URL that points to a location of its data on the internet. This is an issue for NFTs that are supposed to be an immutable assets. Why is this an issue? The answer is to answer the following questions: What will happen to the NFT if the server should go down, if the data is deleted or who is even in charge of running the server?

• The second is that the off-chain data has to be in existence and is to be stored in an accessible place. In many instances, these NFT links return an error message which consequently makes them worthless.

This is where InterPlanetary File System (IPFS) comes in. IPFS enables NFT owners to store and retrieve their data based on a fingerprint of the content itself. The fingerprint known as Content Identifier (CID) is a cryptographic hash. Integrating an IPFS CID in an NFT makes the NFT directly point to its data itself and this is better than a weak HTTP link.

Also, IPFS is interoperable and universally compatible with any data storage system, the system can get data off a local computer, a decentralized storage protocol, or even a centralized provider.

So IPFS is used so that users can take ownership of their NFTs easily without any compromise.

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

How are NFTs used in art, video games and collectible card games?

📌 In Art,

• NFTs is already transforming the art market and the following are the main use of it in art.

• NFTs are used to authenticate original digital art.

• NFTs are used to record and as proof of ownership of digital art.

• NFTs are used to tokenize artwork for trading.

• NFTs are used to certify the uniqueness of digital art.

📌 In Video games,

• NFTs in gaming create value for gamers and give them real ownership rights over assets they acquired in the game. It does this by making these assets valuable digital assets which are tradable.

• NFTs in video games are used for granting players ownership and control of their in-game assets and they can earn a real rewards for components they earn in a game.

• NFTs are used for transferring ownership as players can sell their game collectibles and get real value for them.

How are NFTs revolutionizing property titles?

NFTs is revolutionizing property title especially digital art. When I say digital art, I do not just mean aesthetic artworks but also, music, some text publication, design content, etc.

With the invention of NFTs, art owners now have their ownership, authentication, and originality of their work digitally. Since NFTs offers verified and trustable authentication of arts, art creator is provided with more power, and their right is not claimed by any other person.

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

How are NFTs regulated?

Currently, NFTs are not subjected to any regulation and this means there is no legal protection for anyone that creates or invests in it. However, some marketplaces like OpenSea and Rarible have their own NFT taxation rules.

What are the solutions to the limits of NFT development?

• One main issue that limits the development of NFTs is the presence of intermediaries or third parties. To create an NFT, one will have to turn to two third parties which are blockchain technology and a marketplace.

A solution to this is that there should be a system that will allow one to create a direct link between one’s site or app with the reference blockchain either through a wallet or payment gateway. This will save one from some unnecessary commissions of intermediaries.

• NFTs creation should be done on Blockchain that makes use of proof of stake where not too much energy is consumed.

• There should be some regulations on its development. The fact that anyone can create an NFT has undermined its success and this is because some people create very poor or bad quality NFTs.

• Marketplaces should allow more digital wallets that can be connected to the underlying blockchain where NFTs are created on.

• There should be a system that will check for possible duplication of an already existing NFT.

• There should be a verification process for all marketplaces, this will help users to have full trust and not worry about getting scammed.

• Minting and transaction fees should be moderate. The cost of minting now is very high and discouraging for users.

Thanks for reading.

I am using this medium to invite @bolaji001, @kennydavebobo, @wase1234 @patjwell, and @ngoenyi to participate in this contest.