What You Need to Know About NFTs
Non-fungible tokens or (NFTs) are a non-interchangeable unit of data stored on a blockchain, a form of digital ledger, that can be sold and traded. Types of NFT data units may be associated with digital files such as photos, videos, and audio.
NFTs, or non-fungible tokens are a digital asset that exists on similar blockchain technology to Bitcoin. Non-fungible tokens can be used to represent items such as photos, videos and audio digital files. Access to any copy of the original file, however, is not restricted to the buyer of the non-fungible token.
Each non-fungible token generally differs in its digital makeup, and therefore likely differs in value as well.
The non-fungible token market value tripled in 2020, reaching more than £180 million. During the first quarter of 2021, non-fungible token sales exceeded £1.5 billion.
Almost overnight, non-fungible tokens have taken the art, sports, and entertainment worlds by storm. Many celebrities have made millions selling NFTs, including 3LAU, Eminem, Grimes, Logan Paul, Mark Cuban, Paris Hilton, and Steve Aoki.
Non-fungible tokens have potential for other use cases as well, such as companies tracking their internal resources or platforms verifying subscriptions and use.
In the physical world, British pounds are fungible. No value is forfeited if a person trades any given paper British pound for a different paper British pound.
On the other hand, something such as artwork is generally nonfungible. The “Mona Lisa” is not of equal value to “The Persistence of Memory” as both artworks are unique, deriving value as such.
There are a number of common non-fungible token marketplaces, including Foundation.app, Mintable.app, OpenSea.io, Rarible, and SuperRare.