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Digital assets are growing in popularity, and Non-Fungible Tokens (NFT) are the latest trend. In recent months, NFTs have seen many takers.
These unique digital assets exist on an Ethereum blockchain. The NFT enthusiasts see this as the next big phase for art collection, which can benefit both artists and art collectors.
The trading of NFTs started around 2017, but this latest digital asset gained popularity in early 2021.
It could be surprising for many why NFTs cost millions of dollars. Here are the important points that you should know about NFTs, how they work and even how you can create your NFT.
What is NFT?
Non-fungible means that these digital assets are unique and can't be copied or replaced with something else. These are the digital assets on a blockchain, with each NFT having its unique signature.
The ownership and authenticity of an NFT can be verified by those who want to buy it.
NFTs are not only digital art, but they could be in the form of images, drawings, video clips, music or text. Even tweets and a signature can be bought or sold as NFTs.
Are NFTs a good investment?
Many people see NFTs as a good investment due to the rising prices. Many buyers sell the NFTs even within a few hours of purchase to gain from the price surge. NFTs are also emerging as a new avenue for artists to monetise their artwork.
The creators of NFTs can also get a royalty for every trade after their digital asset is sold for the first time.
Source: NDTV
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