What is NFT? (Non-Fungible Tokens)

Even if you don’t know what is NFT, you have probably heard about its popularity in every step.
NFTs in other words Non-fungible tokens are cryptographic assets on a blockchain with unique identification codes and metadata that distinguish them from each other.
Just three years ago, the NFT market cap was at USD$42mil. Fast forward to the end of 2020, its value has
jumped 705% to USD $338 mil according to NFT tracking site Non-Fungible.
💵The most expensive NFT was sold by Mike Winkelmann for 69 million dollars.

NFT as colored coin
The idea of NFTs emerged from what is called a “colored coin”. Colored coins are tokens that represent real-world assets on the blockchain and can be used to prove ownership of any asset from precious metals to cars to real estate.
It should be noted that unlike cryptocurrencies, they cannot be traded or exchanged at equivalency, therefore they can serve as a medium for commercial transactions.

KEY TAKEAWAYS

  • NFTs (non-fungible tokens) are unique cryptographic tokens that exist on a blockchain and cannot be replicated.

Collectors have sought NFTs as their value initially soared, but has since moderated.

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