Non-fungible tokens (NFTs) are one of the fastest-growing sectors in the crypto industry. They
have many use cases, including artwork, digital collectibles, music, and items in video games.
Non-fungible tokens (NFTs) are cryptographically unique tokens that are linked to digital (and
sometimes physical) content, providing proof of ownership, through the use of blockchain
technology. They are digital assets that contain identifying information recorded in smart
contracts. In short, NFTs have unique attributes; they are usually linked to a specific asset with a
numerical code that is unhackable.
It’s this information that makes each NFT unique, and as such, they cannot be directly replaced by
another token. They cannot be swapped like for like, as no two NFTs are alike. Banknotes, in
contrast, can be simply exchanged one for another; if they hold the same value, there is no
dierence to the holder between, say, one dollar bill and another. Typically, non-fungible tokens
are not divisible, in the same way that you cannot send someone part of a concert ticket; part of
a concert ticket wouldn’t be worth anything on its own and would not be redeemable.
With NFTs, long gone are the days where high prices are needed to be paid to ‘experts’ and
middlemen for adjudicating and verifying the authenticity of an art piece or collectible. No more
copyright issues, no more problems of storing and protecting the pieces, which can really rack up
the cost. All these will become a thing of the past as blockchain technology asserts itself into the
mainstream and prove its viability for corporations and governments alike. And with the trading
volume of NFTs reaching a dizzying $10.67bn in Q3 2021, it’s just a matter of time when NFTs start
permeating into our everyday lives.
