Non-fungible tokens (NFTs) are unique digital assets that are stored on a blockchain. Unlike cryptocurrencies such as Bitcoin, which are fungible, meaning that one unit of Bitcoin is interchangeable with any other unit of Bitcoin, NFTs are unique and cannot be replaced by any other token.
NFTs are used to represent digital assets such as artwork, music, videos, and other creative works. Each NFT is assigned a unique identifier that is stored on a blockchain, making it impossible to duplicate or counterfeit the digital asset it represents.
The ownership of an NFT can be transferred from one person to another, just like any other asset. The blockchain records every transaction, providing a clear history of ownership.
NFTs have become increasingly popular in the art world, where they are used to represent digital art and other creative works. NFTs have also been used in the music industry to represent ownership of songs and albums, and in the sports industry to represent ownership of memorabilia.
One of the benefits of NFTs is that they provide a new revenue stream for artists and creators, who can sell their digital creations as unique, one-of-a-kind assets. NFTs also provide a new way for collectors to own and display digital art and other creative works, and for investors to speculate on the value of these assets.
Reviewed by kamal kumar das
on
March 21, 2023
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