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Trying the most complex issues for over 30 years.

What to know about NFTs

On Behalf of | Feb 10, 2022 | Emerging Business

The blockchain and cryptocurrency world can seem like it is constantly growing and developing. When you start to understand what there is to know, creators and developers find a new way to add to this evolving market.

While non-fungible tokens (NFTs) have been around since about 2014, they have had a sudden burst in popularity over the last year or two. As this new corner of the crypto universe has developed, more people are wondering what NFTs are, what they can do with them and how they can get in on this growing market.

Here’s a brief overview of non-fungible tokens.

What does an NFT do?

What makes NFTs unusual is that they are part art and part investment. While they are loosely related to cryptocurrency, they are one-of-a-kind, so one NFT will probably not have the same value as another NFT.

How are they related to cryptocurrency?

NFTs have the same blockchain foundation that cryptocurrencies have. Most NFTs are part of the Ethereum blockchain. You can still purchase Ethereum without getting involved with NFTs. There are also a few other blockchains implementing their own NFTs.

Are NFTs only digital art?

NFTs may have started as digital art, but the possibilities have grown as fast as the NFT trend. Now potential NFTs include other digital work, such as:

Just about the time someone puts a limit on what can or cannot be an NFT, someone creates and sells it as an NFT.

What do I do with it?

NFTs could be compared to other collectibles like artwork or baseball cards. You can buy, collect, trade and sell these digital tokens.

Like any other collectible, they may or may not increase in value, so if you decide to purchase NFTs, beware that you may not gain anything for what you invest.