A non-fungible token (NFT) is a distinct piece of data on a blockchain that may be linked to both digital and physical items to offer an immutable proof of ownership. An NFT’s data can be linked to digital photos, music, videos, avatars, and other content.

They can also be used to provide an NFT owner with access to a variety of tangible assets, including vehicles, yachts, as well as tickets to live or virtual events.

NFTs have been around since 2014, but they are now gaining traction as an increasingly popular way to acquire and trade digital art.

NFTs often have unique identification codes and are one of a kind, or at least one of a very small run. This contrasts with the majority of digital works, which nearly always have an endless supply. Theoretically, if an asset is in demand, reducing its supply should increase its value.

The individual photographs, as well as the full collage of images, are available for free Internet viewing by anybody. So why do people want to pay millions on something they can just download or take a screenshot of?

This is because an NFT enables the buyer to retain ownership of the original item. Additionally, it has built-in authentication that serves as ownership confirmation. The “digital bragging rights” are almost more valuable to collectors than the actual item.