When we talk about non-fungible tokens, we mean cryptographic assets on blockchains with unique identification codes and metadata that distinguish them from each other.
NFTs are blockchain-based tokens that represent ownership of a digital asset. From digital art and published columns, to sports highlights, viral photos, and even memes, NFTs can take the form of virtually any type of online content, and these irreplicable tokens have soared in popularity. A Non-fungible token (NFT) is a unique asset that lives online and is managed in a digital ledger.
These digitally unique assets are associated with a distinct value with a certificate of authenticity, so even if it exists online, the asset cannot be duplicated easily and indefinitely. This is because every NFT exists on decentralized digital platforms based on blockchain technology.
Transactions on a blockchain platform are written to a digital ledger. NFTs are purchased through a third party online marketplace or exchange.
Non-fungible tokens are not true cryptocurrencies like Bitcoin. Cryptocurrencies use blockchain for its ability to track financial transactions between parties and have been designed as a type of digital currency for use on the internet and in a digital world.
NFTs are also built on a blockchain, but are instead used to secure ownership of an asset. Like a certificate such as an automobile or real estate title declaring the legal owner of a car or house, except that an NFT is proof of ownership in digital form. Most NFTs are based on the Ethereum blockchain network.
NFT markets have attracted the attention of collectors, investors, celebrities and even chefs. And with the rise in popularity and attention to the cryptocurrency collection space, artists have taken advantage of opportunities to sell their work for huge sums with some investors spending tens of millions on an NFT.