You may have heard the news, a digital artist known as Beeple sold an NFT of his work for $69 million or you may have heard about Jack Dorsey(Founder Of Twitter) has sold his first tweet as NFT.So what is an NFT and why does so much hype surround it?

This is Beeple’s digital artwork which sold for 69 million dollars.

Decoding NFTs?

NFTs simply stands for Non-Fungible Token. To understand NFTs we need to know what fungibility is. A fungible item is something that can be exchanged with another item of the same classification. Fungible items are identical and interchangeable. For example, a ₹100 bill can be exchanged with another ₹100 bills. 

Now let’s take a look at what Non-Fungible Item is something that cannot be exchanged with another item. Non-fungible items are unique and identifiable. Another characteristic of Non-Fungible Items is provable scarcity. It can be explained easily by an example Even though the story inside is the same, a first edition of The Count Of Monte Cristo will be more sought-after than a modern reprint.

What Are NFTs?

NFTs are digital items that can be bought and sold using blockchain technology, these items are unique and not interchangeable. NFTs can be used to represent items such as digital art, memes, photos videos, drawings, audio, tweets, GIFs, songs, games and other types of digital files. People buy and sell ownership of unique digital assets using cryptocurrencies.NFTs are just like a collector’s item.

NFTs have huge potential because they are programmable, NFTs can act as member cards, tickets for events across the globe and even in the virtual world.

Diving Into The NFT World

What do Eminem and Neymar Jr have in common? Very little other than the fact both own Bored Ape NFTs.Celebreties all around the world have been buying NFTs and showing them to their fans. NFTs are going to be common in the near future. People can buy and sell NFTs on different websites. These websites are known as Marketplaces,OpenSea:It is one of the leading marketplaces where users can buy and sell NFTs, the marketplace supports more than 100 different payment tokens.

The video game market is keen on diving into the world of NFTs and some major companies have already shared their vision of developing the next big thing for NFTs.Gamers are already accustomed to digital art in a video game like skins. 

Footwear giant Nike is also tinkering with NFTs, Recently,there was a party in NYC where people got in by buying a NFT.We are seeing some interesting developments in  NFTs and the metaverse.