What Is NFT ?
NFT is a piece of data stored on the Blockchain that identifies and confirms the uniqueness of any digital file. They can be used to represent video, audio, photo and similar file elements. However, the ability to access any copy of the original file is not limited to its recipient. NFTs are tracked on blockchains to provide the original owner with proof of ownership other than copyright.
In 2021, the rate of nft usage and interest has increased. Blockchains like Ethereum, Flow, and Tezos have specific standards for supporting NFTs. Each NFT works to make the digital item unique in a unique way. NFTs commodify popular entertainment such as art, sports, music.
However, data links specifying details such as where the artwork is stored may be lost. Also, owning does not directly copyright any digital asset the token represents. While one can sell an NFT showcasing their work, the buyer of the NFT will not receive copyright privileges when the owner changes. Therefore, the original owner is given reason to create more of the same work. So an NFT is only proof of ownership apart from copyright.
A Non-fungible token works like a cryptographic token, but unlike cryptocurrencies like Bitcoin, it is not mutually exchangeable. Most Non-fungible tokens are on the Ethereum blockchain, but other blockchains can implement their own NFT. This cryptographic transaction process Non-fungible token authenticates each digital file by providing a digital signature that is used to track ownership.
In 2020, the Non-fungible token market tripled and recorded very rapid growth with a market value of 250 million dollars.
In the first three months of 2021, users spent over $200 million on NFTs.
NFTs have also exploded as the number of users and volumes in the crypto market has increased.
accelerating a greater drive for digital economic innovation.