An NFT, or Non-Fungible Token, is a unique digital item that can be bought, sold, and owned. It's like a one-of-a-kind collectible, but instead of being a physical object, it exists solely in the digital realm. NFTs are stored on a blockchain, which is a secure and transparent ledger that records transactions and ensures the item's authenticity.
Think of an NFT like a digital art piece. Just as a painting by a famous artist is unique and valuable, an NFT can be a digital creation that holds value because of its rarity and the fact that it can't be replicated. NFTs can take many forms, such as images, videos, music, or even virtual real estate.
One of the key features of NFTs is that they are non-fungible, meaning they can't be exchanged for something else of equal value. This is in contrast to cryptocurrencies like Bitcoin, which are fungible and can be exchanged for other Bitcoins of the same value. The non-fungibility of NFTs makes each one distinct and valuable in its own right.
NFTs have gained popularity in recent years, particularly in the art and collectibles world. They offer a new way for creators to monetize their digital work and for collectors to own unique pieces. Some NFTs have even sold for millions of dollars, highlighting their potential value.
Resources
- https://www.coindesk.com/what-is-an-nft
- https://www.investopedia.com/non-fungible-token-nft-5115210
- https://www.forbes.com/advisor/investing/nft-non-fungible-token