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market | IST

Explained: All you need to know about NFTs, the latest trend in digital space

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The digital space as a sector has seen a lot of big trends in recent years. There were initial coin offering (ICOs), decentralized finance (DeFi) and Bitcoin surging to all-time highs and then a lot more. The latest in this line is the non-fungible tokens (NFTs) platform.

The digital space as a sector has seen a lot of big trends in recent years. There were initial coin offering (ICOs), decentralized finance (DeFi) and Bitcoin surging to all-time highs and then a lot more. The latest in this line is the non-fungible tokens (NFTs) platform.
So, what are NFTs
In economics jargon, a fungible token is an asset that can be exchanged on a one-for-one basis. Think of dollars or bitcoins each one has the exact same value and can be traded freely. A non-fungible object, by contrast, has its own distinct value, like an old house or a classic car.
Cross this notion with cryptocurrency technology known as the blockchain and you get NFTs. These are effectively digital certificates of authenticity that can be attached to digital art or, well, pretty much anything else that comes in digital form audio files, video clips, animated stickers, this article you're reading.
NFTs confirm an item's ownership by recording the details on a digital ledger known as a blockchain, which is public and stored on computers across the internet, making it effectively impossible to destroy or lose.
These tokens are white-hot in the collecting world at the moment, where they're being used to solve a problem central to digital collectibles: how to claim ownership of something that can be easily and endlessly duplicated.
In a CNBC-TV18 special segment on cryptocurrencies and digital assets, Manisha Gupta explains all about NFTs and goes in-depth into what are the key features and how they work.
(With input from AP)