What is NFT?

NFT continues to gain traction in 2021. A recent report found that NFT sales jumped from $825 million in 2020 to $17.7 billion in 2021. NFTs have the potential to cause major disruptions due to mainstream adoption through brand-name organizations, as well as the opportunities the field creates for collecting, betting, trading, displaying, and gaming. So what is NFT?

Non-fungible tokens (NFTs) are blockchain-based digital tokens that represent ownership of a specific digital asset. The digital asset may be text, pictures, artwork, sounds, videos, games, or other creative content. NFTs use blockchain technology to verify ownership rights for digital content and assets. The buyer gets a token of the original copy and basic usage rights, but cannot replicate or reproduce it.

But NFTs go beyond copyright for one-of-a-kind digital assets. The digital ledger records the asset history, its creator, and acts as proof of ownership. Additionally, they convert unique digital artwork into tokens to prevent concept copying or duplication.

Online markets like OpenSea and Nifty Gateway allow digital artwork production, purchase, and sale. The thrill of purchasing non-fungible tokens is in owning a genuine piece. Hence, collectors, fans, and investors trust in the verifiable scarcity of NFTs. With basic usage rights, buyers can sell NFTs for a profit, while creators can also include a royalty agreement that gives them a portion of the profits when their NFTs are traded on secondary markets.

Source: https://www.cryptohopper.com/blog/5655-nft-trends-to-dominate-in-2022