The crypto space has been lately abuzz with the NFT mania. And a growing number of banks, retailers, celebrities are hopping on the bandwagon of acquiring and selling them on the internet. NFTs have become the latest trend, if not a cult, in their own right. This brings us to a very fundamental question; what exactly are NFTs anyway?
To put it simply, they are digital tokens that are a type of cryptocurrency, much like Bitcoin or Ethereum. NFT stands for non-fungible token. But unlike a standard coin in the Bitcoin blockchain, an NFT is unique and can't be exchanged like-for-like (hence, non-fungible). So let’s dive into the topic and find out how NFTs are taking the crypto world by storm. Let’s start with what makes NFT’s so special! NFTs are used to prove the ownership of both virtual or physical assets like art, collectibles, a ticket to a concert or a sports event, real estate, or assets like digital artwork, domain name, or digital collectibles.
In fact, you can consider it as a certificate of ownership of an asset. That would further generate some value for you because of its rarity and authenticity. NFTs are secure as any fungible token like a Bitcoin. Which means no one can steal them and no two NFTs are interchangeable. Plus a copy of an NFT (also known as piracy) is literally as good as the original artwork or asset for just viewing, even if it isn’t a part of the blockchain. You must be curious how NFTs came to be? So Most NFTs are issued and traded on Ethereum.
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