2.2 What are NFTs?

Non-fungible tokens (NFT) are digital assets that has a digital signature that renders it unique; it is possible for us to distinguish between one NFT from another because they have a special, non-transferable identification. NFTs exist on a blockchain and can be used to represent ownership of practically any digital asset, such as art, GIFs, videos, music, images, or collectibles.

NFTs usually operates on the principle of decentralized finance, in which assets and participants in a market are traded via P2P transactions. It also presents a significant economic opportunity for enterprises to monetize previously illiquid assets. The NFT market is booming; with the total sales of NFT in the past month exceeding $900 million, and they are becoming an increasingly popular way to buy and sell digital artwork.