What are NFTs?
NFTs, or Non-Fungible Tokens, are a type of digital asset that is unique and not interchangeable. Unlike other cryptocurrencies such as Bitcoin or Ether, which are all interchangeable and can be exchanged for one another, each NFT token is distinct from the others. They represent ownership of an item in the form of a digital file stored on a blockchain platform, typically Ethereum. The uniqueness makes them appealing to those looking to create collectibles or value their artwork digitally.
How do NFTs work?
NFTs operate on the blockchain technology that powers many popular cryptocurrencies like Bitcoin and Ether. This allows them to be transferred between users without needing any middleman such as banks or governments involved in the transaction process. When created, each NFT token is given its own unique set of attributes – these could include things like images, audio clips and even short videos – allowing it to be tracked securely across all transactions made with it throughout its life cycle on the blockchain network. These tokens can then be bought and sold just like any other cryptocurrency through various online exchanges where they will have their own market price determined by supply & demand forces at play within the marketplace at any given time.
What types of items can you buy with an NFT?
You can purchase almost anything with an NFT! Common purchases found on platforms like OpenSea include virtual artworks& collectibles (think rare Pokémon cards), in-game assets (such as skins from Fortnite) physical products (like sneakers and streetwear), tickets/access passes for events/conferences/festivals etc., domain names & websites – really anything you’d find online has potential to become a tradable asset using this new technology!