An NFT is any digital asset that represents ownership of virtual items and is ‘minted’ or created on the blockchain. Celebrities and tech evangelists have jumped on the cryptocurrency bandwagon to promote NFTs.

What are NFTs?

“For example, in the real world, if you buy the Mona Lisa, your friend can make a copy of it. But there’s an art expert who can come check if it’s the original.

In the digital world, if you make a copy of an image, no one knows who owns the original. Now that’s possible thanks to blockchain technology [and NFTs]”

NFTs convert digital works of art and other valuables into one-of-a-kind, verifiable assets which are simple to trade on the blockchain.

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Although this may be difficult to grasp for beginners, the payback has been enormous for many artists, singers, influencers, and others. Investors have paid top prices for NFT variants of digital images.

Are NFTs And Cryptocurrencies the same thing?

NFTs are not similar to cryptocurrencies such as bitcoin and Ethereum, which can be exchanged or replaced (fungible) with other similar currencies of the same value (just how a dollar bill works). On the other hand, NFTs are unique and not interchangeable, so they are different.

NFTs are mainly used for buying, investing, and trading a wide range of digital products such as virtual cards. Images of objects, avatar skins, virtual real estate, and in-game assets.

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Conclusion: An NFT is any digital asset that represents ownership of virtual items and is ‘minted’ or created on the blockchain.

NFTs are not similar to cryptocurrencies such as bitcoin and Ethereum, which can be exchanged or replaced (fungible) with other similar currencies of the same value (just how a dollar bill works).