NFT (Non-Fungible Token)
An NFT is a digital asset that represents real-world objects such as art, music, in-game items, and videos. They are bought and sold online, often with cryptocurrency, and are generally encoded with the same underlying software as many cryptocurrencies.
Although they have been around since 2014, NFTs are now gaining notoriety as they become an increasingly popular way to buy and sell digital artwork. The NFT market was worth a staggering $41 billion in 2021 alone, an amount close to the total value of the entire global fine art market.
NFTs are also generally one of a kind, or at least one of a very limited number, and have unique identification codes. "Fundamentally, NFTs create digital scarcity," says Arry Yu, chairman of the Washington-based Cascadia Blockchain Council and managing director of Yellow Umbrella Ventures.
This is in stark contrast to most digital creations, which are almost always infinite in number. Hypothetically, a supply disruption should increase the value of that asset, assuming there is demand for it.
0 Comments