What is an NFT ?

An NFT, or non-fungible token, is a type of digital asset that represents ownership or proof of authenticity of a unique item or piece of content. Unlike fungible tokens, such as Bitcoin or Ethereum, which can be exchanged for an equal value, NFTs are unique and cannot be replaced by another identical item. This makes them ideal for representing digital collectibles, such as one-of-a-kind artwork, limited-edition videos or music tracks, or even virtual real estate.

NFTs are created using blockchain technology, which allows for the creation of unique digital assets that can be verified and tracked on a decentralized and tamper-proof ledger. This means that NFTs can be traded, sold, and transferred in the same way as physical assets. Additionally, NFTs can also include smart contract functionality, which allows them to be programmed to perform specific actions, such as displaying a piece of artwork in a virtual gallery or granting access to a virtual world.

NFTs are typically created on a blockchain platform that supports the ERC-721 standard, which is a set of rules and guidelines for creating and managing non-fungible tokens on the Ethereum blockchain. This standard ensures that NFTs are unique, identifiable, and can be transferred between different addresses on the blockchain. Due to the unique, authentic and verifiable nature of NFTs, they are gaining traction in many industries, from art, music, gaming, and virtual real-estate. It's also becoming a new way for creators to monetize their work and for collectors to own and invest in unique digital assets.