NFT

What is NFT?

An NFT (Non-Fungible Token) is a unique digital asset on a blockchain that provides verifiable proof of ownership. Unlike cryptocurrencies, each NFT has distinct characteristics making it one-of-a-kind.

How does NFT work?

1. A creator mints an NFT via a smart contract, which assigns a unique token ID and records the creator as first owner.
2. Metadata linking to the asset's name, description, and file is attached to the token ID.
3. Ownership is tracked on the public ledger and updated on every sale or transfer.

Why does NFT matter?

NFTs give artists and creators verifiable digital scarcity, enabling them to monetize work and earn royalties on every secondary sale.

Key features of NFT

• Verifiable proof of digital ownership
• Unique token ID preventing replication
• Programmable royalties on secondary sales
• Interoperable across marketplaces and virtual worlds

Examples of NFT

CryptoPunks and Bored Ape Yacht Club pioneered digital identity via NFTs. SuperRare lets artists sell one-of-one digital works.

Axie Infinity uses NFTs as unique playable characters.