What is NFT and how is it used?

NFT stands for Non-Fungible Token, a unique digital asset that cannot be replicated or exchanged like-for-like with another asset. NFTs are created using blockchain technology, ensuring that the asset is authentic and ownership is verified.

NFTs are typically used to represent digital art, music, videos, and other types of digital content. They are used to verify ownership and authenticity of digital assets and can be bought, sold, and traded like other forms of digital currency.

For example, an artist may create digital artwork and sell it as an NFT. The NFT is a digital certificate of ownership and authenticity, allowing the buyer to prove they own the original artwork. The artist may also include stipulations in the NFT, such as rules for displaying the artwork or limitations on its use.

NFTs have become popular in recent years, particularly in art and music, to monetize digital content and provide a way for creators to profit from their work. However, they have also been criticised for their potential environmental impact due to the energy-intensive nature of blockchain technology.