NFT

NFT stands for Non-Fungible Token. Non-fungible tokens, which are gaining steam not only in India but across the globe, have seen significant growth in terms of sales. It is a unit of data stored on a digital ledger, called a blockchain, that certifies a digital asset to be unique and therefore, not interchangeable. NFTs can be used to represent items such as photos, videos, audio, and other types of digital files. It uses a digital ledger to provide a public certificate of authenticity or proof of ownership, but does not restrict the sharing or copying of the underlying digital files or the re-creation of identical NFTs. The ownership that NFTs confer is not legally binding. The first known NFT, Quantum, was created by Kevin McCoy and Anil Dash in May 2014, consisting of a video clip made by McCoy's wife Jennifer. NFTs have taken the digital space by storm, especially in the post-pandemic world, and several key personalities across the globe have jumped the bandwagon. In India, Amitabh Bachchan, Rajinikanth, Salman Khan, Malayalam actor Rima Kallingal and Sunny Leone are among celebrities who have launched their NFTs. Recently, a 10 year old, Sahdev Dirdo, who gained internet fame after a clip of him singing “Bachpan ka Pyaar” was viral, has entered the NFT making him the youngest in India to make a foray into the digital asset space. NFT has seen some use as a speculative security and a means of money laundering. It has also drawn criticism with respect to the energy cost and carbon footprint associated with validating blockchain transactions as well as their frequent use in art scams. More