WHAT IS AN NFT?

NFT stands for Non-Fungible Token, which is a unique digital asset that is stored on a blockchain, typically the Ethereum blockchain.

Unlike fungible tokens such as cryptocurrencies which are interchangeable and have the same value, each NFT is unique and cannot be replicated. NFTs are used to represent a wide range of digital assets, including digital art, music, videos, and even virtual real estate.

When someone purchases an NFT, they receive a cryptographic certificate of ownership, which is recorded on the blockchain. This certificate proves that they own the original, authentic version of the digital asset, and gives them the ability to transfer or sell it to someone else.

The use of NFTs has grown in popularity in recent years, with some high-profile examples of NFT sales fetching millions of dollars. However, there is also some debate about the value and sustainability of the NFT market.