What is an NFT?

A Non-Fungible Token (NFT) is a unique digital asset that represents ownership or authenticity of a specific item, such as digital art, collectibles, virtual real estate, and even digital music. Unlike cryptocurrencies, which are fungible and interchangeable, NFTs possess distinct properties that make them individually distinguishable, ensuring that each token is one-of-a-kind. Built on blockchain technology, NFTs provide a transparent and immutable record of ownership, enabling creators and collectors to establish provenance and verify the rarity of their digital assets.

Various NFT platforms have emerged to cater to the diverse needs of creators and collectors in the expanding digital asset space. VeVe, for instance, is a digital collectibles marketplace that offers licensed virtual goods from major brands like Marvel, DC Comics, and Cartoon Network. OpenSea, on the other hand, is a general marketplace where users can trade a wide range of NFTs, from art to virtual land. Meanwhile, NBA Top Shot has gained significant popularity by allowing fans to collect, trade, and showcase officially licensed NBA highlights as digital collectibles. These platforms are driving the growth of the NFT market by offering new monetization opportunities for creators and unique ownership experiences for collectors.