WHAT ARE NFTs?

NFTs (Non-fungible tokens) are similar to physical collector's pieces, only they are in digital form. So now, instead of getting an actual physical piece of art, buyers get a digital file in their digital wallet instead.. They are also the exclusive owner of that piece. Just like physical collector pieces, NFTs can have only one owner at a time. Just like other speculative assets, people purchase NFTs hoping the value will increase over time.

HOW DO THEY WORK?

NFTs are usually held on the Ethereum blockchain, but other blockchains can hold them as well. The blockchain is a distributed public ledger that records transactions. NFTs carry an extra set of data that makes them work differently from a coin.

An NFT is created, or “minted” from a digital item that represent both the physical and digital item. Such as illustrations, videos, music, etc.