Non-fungible tokens (NFTs) have taken the digital world by storm. This digital asset is selling like some exotic item, sometimes fetching millions of dollars. Here’s all you need to know about this new tech trend.
Non-fungible tokens (NFTs) have taken the digital world by storm. This digital asset is selling like some exotic item, sometimes fetching millions of dollars. Here’s all you need to know about this new tech trend. (Image: News18 Creative)
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NFTs are unique digital assets that represent real-world objects (art, music, tickets, fashion items, in-game items etc.). They provide verifiable ownership of digital items and are generally encoded with the same underlying software as many cryptocurrencies. (Image: News18 Creative)
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The inventors created their first NFT in 2014 and named it ‘”monetized graphics”. They demonstrated the NFTs as a system of verifiably unique digital artworks. (Image: News18 Creative)
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The word fungible essentially means that something is interchangeable; it refers to things that can be divided in a bunch of different ways. (Image: News18 Creative)
A non-fungible token is tied to one particular digital asset and cannot be replaced. (Image: News18 Creative)
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The key difference between cryptocurrency and NFT is that cryptocurrency is fungible. You can trade a Bitcoin for another Bitcoin, you cannot do so for an NFT. (Image: News18 Creative)
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NFTs have a feature that helps artists get a percentage every time the NFT changes hands; it ensures that artists benefit from the popularity of their art. (Image: News18 Creative)
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There have been some attempts at connecting NFTs to real-world objects, often as a sort of verification method. (Image: News18 Creative)
