What is exactly an NFT?
NFT stands for non-fungible token.
A token is the sign of ownership of an asset. Think about it as a train ticket, which is the sign of ownership of a seat, on that train, at that moment. The token is a digital asset that represents a wide range of unique tangible and intangible items. This token is stored on a transparent blockchain, a digital decentralized ledger tracking transactions of items or assets.
Artists can “mint” digital images and collections, stored on cloud platforms, and sell them through cryptocurrency marketplaces – it’s a new opportunity and channel for artists to generate income for their livelihoods. Sounds great, right?
One of the main benefits of owning a digital asset versus a physical one is that each NFT, as mentioned before, contains distinguishing information that makes it both distinct from any other NFT and is easily verifiable.
When purchasing an NFT, you acquire both the unerasable ownership record of an asset and access to the actual asset. At the moment they’re mostly works of digital art.