NFT stands for Non-Fungible Token. It is a digital asset representing ownership or proof of authenticity of a unique item or piece of content, typically using blockchain technology. NFTs can be used for various types of digital media, including art, music, videos, virtual items in games, and even real-world assets.
Here are some key features of NFTs:
Non-fungible: Unlike cryptocurrencies like Bitcoin or Ethereum, NFTs are unique and cannot be exchanged one-for-one. Each NFT has its specific value based on its uniqueness or rarity.
Blockchain-based: NFTs are typically built on blockchain platforms like Ethereum. The blockchain records the ownership and transaction history of the asset, ensuring transparency and immutability.
Digital ownership: Buying an NFT gives you ownership of a digital asset. However, owning an NFT doesn’t necessarily mean you own the copyright or intellectual property of the asset.
Interoperable and tradeable: NFTs can be bought, sold, or traded on various NFT marketplaces, such as OpenSea, Rarible, or SuperRare.
Applications: NFTs are used in digital art, collectables, gaming, virtual real estate, and even music and literature. Artists and creators can also embed royalties into NFTs, ensuring they earn a percentage of future sales.