What is an NFT?

A NFT, or non-fungible token, is a unique digital token that represents an object, artwork, virtual asset, or any other distinct item. Unlike fungible tokens, such as traditional cryptocurrencies (Bitcoin, Ethereum, etc.), NFTs are not interchangeable as they possess unique characteristics that make them distinct from one another.

NFTs are based on blockchain technology, which allows proving their authenticity, rarity, and ownership. Each NFT is associated with a unique identifier that is recorded and immutable on the blockchain. This ensures that NFTs cannot be duplicated or counterfeited and also allows tracking their ownership and transaction history over time.

NFTs have experienced rapid growth in recent years, particularly in the fields of digital art, video games, music, collectibles, and other forms of virtual assets. They have opened up new opportunities for artists, creators, and investors by offering a digital marketplace to buy, sell, and trade unique and rare valuable items. NFTs have also created new revenue streams for creators through royalty mechanisms, which allow artists to collect commissions on future sales of their works.