A non-fungible token (NFT) is a non-transferable data unit or digital asset held on a blockchain (digital ledger).
Common NFs are digital images, GIFs, videos, and audio, artwork.
While digital media is easily reproduced, an NFT's value comes from its ownership rights.
Are NFTs one-of-a-kind?
Though each NFT is unique, artists may provide many "editions" of the same NFT. For example, an artist may sell five copies of the same digital artwork, each of which can be purchased by a different person.
Are NFTs same as cryptocurrencies?
NFTs differ from blockchain cryptocurrencies like Bitcoin, in that each token is uniquely recognised.
How can one tell if a particular NFT is genuine?
The blockchain keeps track of NFT ownership, which serves as a virtual pink slip.
What are advantages of NFT?
- Value Addition
- Unique Ownership.
- Data Record.
- Physical art cannot be digitized.
- Uncertain Value
- Environmental Cost
What are disadvantages of NFT?
- It's a high-risk market: whether NFTs have any real value?
- Copying digital assets.
- Costs to the environment.
- Can be stolen.