NFTs, also known as non-fungible tokens represent unique digital assets that exist on the blockchain and cannot be replicated. 2021 was very much the breakout year for the NFT sector with the total number of NFT sales exceeding $17 billion. So, let us discover why they are so valuable.
NFTs are non-fungible assets and this is what makes them unique. Picasso’s paintings aren’t interchangeable. In other words, the original image is irreplaceable and unique. In the same manner, digital files become irreplaceable with NFTs.
To understand non-fungible tokens better, we will look at fungibility. ‘Fungible’ means you can exchange one asset for another. For example, a common fungible asset is a currency. Imagine you have $20 and get two $10 bills in return. You have the same value but a new asset.
Bitcoin is an example of a fungible asset. You can buy goods and services with this, making it different in nature from NFTs.
What Distinguishes NFT Art?
Several factors determine a…