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What is NFT, and how do they work?
An NFT or Non-fungible tokens are one of a kind digital assets that can be bought and sold online; however, they have no tangible form of their own. Therefore, each NFT is a unit of data stored on a digital ledger that is also known as a blockchain. NFT data units may be associated with digital files such as photos, videos, and audio. This also implies that each NFT represents a different underlying asset and can have another value. Simply put, no two NFTs are similar. Digital art is currently the most common use of the NFT. NFTs belong mainly to the Ethereum blockchain.
How do they work?
When NFTs are created or minted, they execute a code stored in smart contracts that conform to different standards. Like cryptocurrencies, NFTs are bought and sold on specialized platforms; however, what changes hands is a certificate of ownership. With a bit of technical know-how, it is also possible to make, or “mint”, your own NFT
The truth is:
The NFTs have opened up a new platform for struggling artists and musicians to participate in the same and generate monetary benefits. The NFTs aren’t limited to them, though; anything unique and rare can be traded. Digital art, collectables, Ticketing, games. Virtual worlds, sports, fashion, Film, Music, Academia. It includes these fields and much more.
STATS: The digital artwork entitled “Everydays – The First 5000 Days”, by artist Mike Winkelmann, also known as ‘Beeple’, sold for US$69.3 million in 2021.
And closer home in India, Amitabh Bachchan is among the first Indian actors to jump on the NFT bandwagon and is all set to roll out his own NFTs.