What are NFTs?

NFTs are unique digital tokens that assure exclusive ownership and minimise duplication.

They are digital representations of assets.

Similar to digital passports, each token contains a unique, non-transferable identity that distinguishes it from other tokens.

NFTs are also extensible. So you can combine one NFT with another to create a third, unique NFT.

Like cryptocurrencies, NFTs also use blockchain technology.

Proof of ownership of the NFT is recorded on a blockchain, making NFTs tradable to all the users on that particular blockchain network.

While you can buy, sell, or barter NFTs like any other commodity, they differ from cryptocurrencies.

Since NFTs are one-of-a-kind, solitary assets, you can only exchange them with entirely different assets.

Due to their high demand, it is common to auction off NFTs.

However, trading NFTs may be slightly trickier because their value lies in the existence of only one original rendition.