Non-Fungible Tokens (NFTs)

Disclaimer: Copyright infringement not intended.

Context

In January OpenSea’s monthly volumes for Ethereum shot over $4.8 billion. OpenSea is said to be one of the largest NFT marketplaces.

What are NFTs?

NFTs are digital assets whose ownership is verified through transaction records stored on blockchains. Art work, digital avatars and accessorised monkeys are some of the most commonly traded NFTs.
In a nutshell, NFT means non-fungible tokens (NFTs), which are generally created using the same type of programming used for cryptocurrencies. In simple terms these cryptographic assets are based on blockchain technology. They cannot be exchanged or traded equivalently like other cryptographic assets.
Like Bitcoin or Ethereum. The term NFT clearly represents it can neither be replaced nor interchanged because it has unique properties. Physical currency and cryptocurrency are fungible, which means that they can be traded or exchanged for one another.
NFT stands for a non-fungible token, which means it can neither be replaced nor interchanged because it has unique properties.

Key Features of NFT

Digital Asset - NFT is a digital asset that represents Internet collectibles like art, music, and games with an authentic certificate created by blockchain technology that underlies Cryptocurrency.
Unique - It cannot be forged or otherwise manipulated.
Exchange - NFT exchanges take place with cryptocurrencies such as Bitcoin on specialist sites.

How is an NFT Different From Other Cryptocurrencies?

Although NFTs are created using the same kind of programming language as other cryptocurrencies, that's where the similarity ends.

Cryptocurrencies are “fungible”; they can be traded or exchanged for one another. They’re also equal in value.

For example, one Bitcoin is always equal to another Bitcoin, or one Dollar

is always equal to one Dollar.

Each NFT acts as a digital signature that makes it impossible for them to be exchanged for or equal to one another.

For example, The Last Supper is a painting

of a kind and cannot be exchanged with

another painting.