An NFT is a digital asset that depicts real-world components such as art, music, in-game goods, and movies. They’re frequently encoded with the same software as many other cryptos, and they’re bought and exchanged online.
The word NFT stands for “non-fungible token” and refers to the unique, one-of-a-kind nature of these digital assets. Physical money and cryptocurrencies like Bitcoin or Ethereum, are both “fungible,” which means that one unit can always be exchanged for another unit. If I give you a $10 dollar bill and you then deposit $10 into my account, our exchange of value can be considered equal. When it comes to NFTs, each token has unique characteristics and a unique digital signature that prevents it from being replaced by another NFT.
While NFTs have been around since the days of Crypotkitties in 2017, the beginning of 2021 saw the space soar in popularity. Christie’s even sold an NFT for $64 million!. Some of the most popular NFT titles include NBA Top Shot, Axie Infinity and Cryptopunks.