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Scholar-Journalist

All about NFT

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By Aaranya Vinit

NFT stands for Non-Fungible Token. Something that is “fungible” and can be exchanged with an equivalent item, for example, a $5 bill with another $5 bill. Cryptocurrencies, which use a digital public record of transactions called a blockchain, are fungible.

NFTs are digital items that can be bought and sold using this blockchain technology. But they are not fungible, making them a different type of asset.

How do NFTs work?

NFTs gives the ability to assign or claim ownership of any unique piece of digital data, trackable by using Ethereum’s blockchain as a public ledger. An NFT is minted from digital objects as a representation of digital or non-digital assets.

Who uses NFTs?

NFTs are used among artists, gamers and brands across all kinds of sectors. It seems every day brings a new player to the NFT marketplace. For artists, stepping into the NFT space adds another possibility for selling art, and provides fans with a way to support it. NFT art ranges from small, quick-to-make GIFs to more ambitious works. Celebrities are also getting involved, by investing as collectors or creating their own NFTs (or having them created for them by artists).

Why are NFTs controversial?

There’s a lot of money being made in the NFT market, but you’ll have heard there’s also great controversy that NFTs use a horrendous amount of computing power – and so a huge amount of energy. Some are worried about the very real impact the craze could have on the environment.

Should You Buy NFTs?

Just because you can buy NFTs, does that mean you should?

NFTs are risky because their future is uncertain, and we don’t yet have a lot of history to judge their performance but whether or not NFTs are here to stay, for the moment they are making some people money and they’re creating new possibilities for digital art.

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