NFTs or Non-Fungible Tokens are digital assets like art, music, video games and so on that operate on the blockchain technology. They are bought and sold digitally, in exchange for cryptocurrencies. What makes this asset class different from cryptocurrency is that these are non-fungible or non-exchangeable. In other words, one cannot usually exchange one NFT for another as each digital art is unique and based on certain parameters (that we will discuss further) is valued differently. The value of each NFTs tends to grow based upon various criteria such as - is it first of its kind? is it unique? or its previous ownership. Based on these criteria the market value of a NFT changes with time.
NFTs are trustworthy and easily transferable due to the use of blockchain technology. Each NFT exists on a decentralized digital platform, managed in a digital ledger and bought/sold online. It creates a wide opportunity for various individuals to sell their works online. Small creators, in particular, benefit most as they no longer need to pay huge commissions to art gallery to display their artwork.
In the past one year, the NFTs have shown extensive growth in the market. Where the number of sales have increased to 125% in the past one year. And the amount money transactions have increased to 50000%. Wondering where you can know more? Watch this video on our YouTube channel.