When you’ve been reading about the cryptocurrency world, you’ve probably heard of something called an NFT and how the market surrounding these tokens is taking off. But what exactly is an NFT? And why would anyone purchase one?

The letters NFT are an abbreviation, and so they stand for non-fungible token. The word non-fungible basically means ‘not tradeable’ and thus, a non-fungible token is a token which isn't exchangeable on a one to at least one basis.

This doesn’t imply that one can't trade an NFT for cash, it just simply signifies that there isn't any common value which one can peg to each NFT. Every NFT could have a price which is unique to it, and its buyer. Think of NFTs as the fine art of the cryptocurrency world. Just as the worth of a painting changes based on when, the place, and to who it is sold to, NFTs are also able to vary worth primarily based on totally different circumstances. Besides just digital paintings, NFTs can be music, videos, and even tweets from sites like Twitter.

Where are NFTs Found?

As mentioned above, NFTs are basically digital art. This means you would discover them in on-line marketplaces for digital art. But this isn’t the only place you could find NFTs, as they can typically be found in the video gaming world. This is because, within the modern day, there are a number of upgrades, reminiscent of outfits and weapons, which you should purchase to your digital characters in several video games. These outfits and weapons are NFTs.

Who Can Make an NFT?

NFTs are constructed on various blockchains equivalent to Ethereum and Tezos. This means anybody who has access to an NFT creation platform, and has a small amount of ETH or XTZ, can create an NFT. An instance is the artist Grimes, who created a bunch of NFTs within the type of distinctive digital renderings, and sold them in a web-based auction in February 2021 for over $6 million.

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