Understanding NFTs
An NFT is a unique digital asset that represents ownership or proof of authenticity of a unique item or piece of content, primarily using blockchain technology.
Blockchain technology
Blockchain technology is a secure, decentralized system that records transactions across many computers, ensuring data integrity. It consists of interconnected blocks containing transaction data, secured through cryptographic hashes. This technology enables transparent and direct transactions without intermediaries, supporting uses beyond cryptocurrencies, such as supply chain management (SCM) and digital identity verification, by offering an efficient framework for data verification and exchange.
Unlike cryptocurrencies such as Bitcoin or Ethereum, which are fungible and can be exchanged on a one-to-one basis, each NFT is distinct and cannot be exchanged on a like-for-like basis, hence the term “non-fungible.”
Some notable NFTs include Beeple’s Everydays...
