If you are constantly engaged in your social media world then you must have heard the word NFT. But what are NFTs? NFT stands for Non- Fungible Tokens. Non- Fungible means unique or what can't be copied. Tokens are digital assets on a blockchain. For example, a best seller book is fungible as it has millions of copies of it in the market, but if the copy of the same book with me has markings and notes in it by me, then such a copy is non-fungible as there is no other book having the same markings and notes on it in the market. Therefore that book with me is a unique piece. (If I try to sell that book in market it is a NFT). Most of the NFTs available in the market are in form of paintings, pictures, songs etc.
NFTs have evolved over the concept of cryptocurriencies. When a person exchanges them there is a unique record created on the blockchain that informs about it's ownership, this records cannot be changed by anyone. Therefore people consider investing in NFTs. But right now investing in NFTs is risky as no one can predict it's future market. But by many reports it is seen that NFTs may have a market in future with introduction of new technologies like metaverse.
This picture is an NFT which was sold for whooping $600,000. There are many examples of such NFTs. NFT is more prominent on ethereum platform. Coming to there value, the value of NFTs is decided on the rareness of that particular asset.
Thank you for reading. Reply in comments: Do you consider buying NFTs?
Written by
Nidhi Patel
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