What are Non-Fungible Tokens?
Non-fungible tokens also known as NFTs, are found in blockchains. A blockchain can be defined as a type of database which holds a collection of information and is stored electronically. NFTs are identifiers (or parts of code) that have been written into a blockchain. NFTs often include unique and scarce information which makes it valuable.
NFTs can be in the form of
- Digital Art
- Games
- Collectibles
- Fashion
- Music
- Film
What is the Value of a NFT?
NFTs can be valuable for its re-sale value but it can also be valuable based on the buyer’s perception of it.
“The reality is that one is buying a link to a file. But also one is buying into an ideology of value and scarcity. For many of us the illusory scarcity is not worth it, for many it is what draws them to the space in the first place.”- Andres Guadamuz