What is NFT?

So, what is a Non-Fungible Token (NFT)? Simply put, it is a digital identifier or asset representing your ownership of a unique item. Blockchain is a decentralized, secure, and transparent database that enables the creation and transfer of digital assets. Hence we store NFTs on a blockchain.

Usually, we create NFTs using the same type of programming used in the case of cryptocurrencies. One of the main features associated with NFTs is that they are unique and cannot be exchanged for other items or assets on a one-to-one basis. It is because each NFT is cryptographically unique and verifiable, which means it cannot be replicated or counterfeited.

We often use NFTs to show that we own some kind of unique digital artwork, music, videos, and other types of media. They can also be used to represent ownership of physical assets, such as real estate or collectables.

NFTs can be used to learn more about blockchain technology that can add more valuable stuff to an investor’s portfolio.

Some examples of NFTs include digital art, virtual real estate, and collectable items in online games. The value of an NFT is determined by the rarity and uniqueness of the object it represents, as well as the perceived value of the item to collectors and buyers.

Just like every other asset, NFTs also have some cons. Please do not invest in a purchase only because we can tokenize it into an NFT. NFTs are not any investments, so ensure that you correctly understand the value of the underlying asset you purchase before you buy the NFT. Read all the terms and conditions beforehand to prevent any problems later.