Introduction about NFT

Introduction

An NFT is a digital collectible—something with no physical existence or intrinsic value, but with a value based on popularity. An NFT is a cultural phenomenon akin to a Rubik’s Cube, Beanie Babies, Pokemon, or Dogecoin. NFTs are related to digital art and indicate that an artist has blessed a certain copy of art—similar to a signature. NFTs are an emerging asset class. In 2021, at least $44.2 billion of cryptocurrency was transacted in the NFT market. But while these types of statements describe traits or aspects of an NFT, if we are to get a deeper understanding we need to have more technical knowledge of “What is an NFT?” NFT stands for non-fungible token. In brief, an NFT is a one-of-a-kind digital asset created, stored, and transferred on a blockchain network, with ownership and transaction history recorded and verified on that network’s blockchain (i.e., digital ledger). This means that the owner of an NFT can prove—without the need of a third-party intermediary—that they are the verified owner. Though typically used to display and transfer data referring and pointing to online digital media files, such as digital artwork, NFTs also have the potential to represent actual ownership of any intellectual property associated with the digital files as well as physical items, such as real estate. While fungible assets, much like dollar bills, can be replaced or exchanged with other identical ones of the same value, NFTs are unique, meaning no two NFTs are the same.