Decoding NFT,What Are NFT And How Do There Work

Non-fungible tokens, or NFTs as they are more colloquially known, have taken the art world by storm. The very first NFT project was launched on the Ethereum blockchain in 2015, and interest grew in tandem with the rise in interest in cryptocurrency. According to NonFungible.com, sales in the first quarter of 2021 exceeded $2 billion, more than doubling the previous quarter's volume.

Celebrities have begun to mint their work on the new Blockchain technology as the market has grown so rapidly. Through this form, artists have discovered a new digital way to monetize their work and broaden their reach out

What are NFTs?

NFTs are short form for 'Non-fungible Tokens', a digital token that is created using blockchain technology and attached to a work of art (Or any original content) that can be anything from artwork, picture, video, music, website or even a GIF. Unlike cryptocurrencies, they cannot be exchanged, replaced or are not divisible.

An NFT token linked to a work of art verifies its authenticity and assigns ownership to the creator. Anyone can make an NFT of their art form, but this does not guarantee a sure-fire sale on the NFT marketplace. The art form must be one-of-a-kind and appealing to the digital spectrum's masses.

As a result, they are one-of-a-kind assets that cannot be replaced, and they are verified and sustained using blockchain technology.

What makes them so special?

Non-fungible tokens have distinct characteristics and are typically linked to a specific asset. They can be used to prove ownership of digital items such as game skins all the way up to physical assets. Other tokens, like coins or banknotes, are fungible. When two fungible tokens are exchanged, they have the same attributes and value.