NFT tokens simplified

Non-fungible tokens (NFT) can be anything in digital format, their hallmark is proof of ownership. There is currently a hype around the use of blockchain technology to sell digital art.

Each NFT is different, although each is part of an identical Ethereum blockchain and has unique information. This information is the main value with which you can buy and sell digital art. As with physical art, its value is determined primarily by the market and demand.

NFTs are meant to give you something that cannot be copied. Anyone can buy a painting, but only one person can own the original.

What are non-fungible tokens?

In simple terms, non-fungible tokens are units of data stored in a digital book. This digital ledger is called a blockchain. Blockchain technology works through a decentralized system. NFTs are tracked on the blockchain to provide the owner with proof of ownership. NFTs are not interchangeable, that is, they cannot be exchanged for each other. Fungibility is essential when it comes to trading, but NFT is still not a classic cryptocurrency that can be exchanged for equal value.

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