An NFT, which stands for non-fungible token, is a unique unit of data employing technology that allows digital content—from videos to songs to images—to become logged and authenticated on cryptocurrency blockchains, primarily Ethereum.
NFTs are unique cryptographic tokens that exist on a blockchain and cannot be replicated..
NFTs can be used to represent real-world items like artwork and real-estate..
"Tokenizing" these real-world tangible assets allows them to be bought, sold, and traded more efficiently while reducing the probability of fraud.
NFTs can also be used to remove intermediaries and connect artists with audiences or for identity management.
The first-ever NFT named Crypto Punks was released in 2017 on the Ethereum Blockchain. In the same year, another project called Crypto Kitties was launched to generate an investment of $12.5 million.
Each NFT comprises distinguishable information that makes it different from other NFTs and makes the authenticity of a collectible easier.
NFT sales hit $25 billion in 2021, but growth shows signs of slowing