Learn with me about NFTs (Non-Fungible Tokens), a technological innovation that has transformed art and digital property. NFTs are unique digital assets that cannot be exchanged equivalently as you would with traditional money or cryptocurrenciesÂč[1].
**What are NFTs?**
NFTs are a form of digital token that represents ownership of a unique asset, whether digital or physical. Unlike cryptocurrencies like Bitcoin or Ethereum, which are fungible and can be exchanged for another one, each NFT has a unique identifier that makes it different from any other.
**How ââdo NFTs work?**
NFTs use blockchain technology to record the ownership and authenticity of a digital asset. This means that when you purchase an NFT, you are acquiring a digital "certificate" that proves that you are the owner of that unique asset. NFTs can be anything digital, such as art, music, games, and more.
**Why are NFTs valuable?**
The value of an NFT comes from its uniqueness and market demand. Like physical art, the value of an NFT can increase if the work becomes popular or if the artist gains recognition. Additionally, NFTs can include smart contracts that grant additional rights, such as a share in future sales.
In short, NFTs are redefining what it means to âownâ something in the digital world, providing a way to buy, sell and collect digital assets with the security and transparency that blockchain offers.
