Decoding NFTs: Here’s all you need to know about it

New Delhi: Non-fungible tokens are digital assets with unique identifiers stored in smart contracts. Each NFT is unique, and as a result, they cannot be directly replaced by another token. Because no two NFTs are alike, they cannot be switched like for like. Banknotes, on the other hand, can be simply exchanged for one another provided they are of equal worth; the possessor will not notice the difference between, example, one dollar bill and another. 

Mike Winkelmann, aka ‘Beeple,' a digital artist, sold an NFT of his work at Christie's for $69 million in March of this year. "Everydays – The First 5000," a digital piece of art, is a collage of digital artwork Mike has posted every day for the past 14 years.

NFTs are also gaining traction in India, with WazirX becoming the first to open an NFT marketplace on June 1. 

How does NFTs function?

 A Non-Fungible Token (NFT) is a data unit that is maintained on a digital ledger called blockchain and is used to represent the ownership of a single physical or digital asset. Digital art, tunes, trade cards, parts of a video, noteworthy tweets, and even actual goods like real estate can all be considered assets.

 NFTs are establishing an internet of assets with the goal of bringing physical domain features as proof of ownership, uniqueness, and scarcity to the digital realm. While anyone can obtain a copy of the artwork provided with an NFT, only the purchaser can claim ownership. They might decide on the asset's scarcity and turn it into a rare collectible to increase its worth.

 NFTs are not the same as popular cryptocurrencies like Ether or Bitcoin. Bitcoins are fungible, which means they can be used interchangeably. One bitcoin can be exchanged for another bitcoin of the same value. A work of art, on the other hand, is one-of-a-kind and non-transferable. Because no two NFTs are the same, you can't trade it for something similar.

Indian Celebrities Taking Interest in NFTs

With the rise in popularity of non-fungible tokens (NFTs), which are essentially blockchain-certified copies of digital art, Indian celebrities, such as Bollywood stars and cricketers, are among those creating and selling non-fungible tokens.

Amitabh Bachchan has introduced his own non-fungible tokens (NFTs), which will contain one-of-a-kind and limited-edition artworks inspired by the actor and his life. The megastar's recital of poetry from Madhushala, his father Harivansh Rai Bachchan's acclaimed collection of poems, will also be up for grabs at the NFTs. He'll also share stories from his illustrious career. Similarly, Salman Khan and other actors are also actively taking interest in NFTs.

The International Rapper who is also known as The Game, the Bollywood Rapper, Raftaar and Bollywood Singer, Mika Singh along with The Great Khali, first Indian heavyweight champion, and Amit Badana, famous YouTuber, have been associated with nOFTEN, eyeing the rapidly growing NFT marketplace in India and abroad and also was a part of commentary for IPL. We will be launching the unique artworks of the celebrities and emerge as the go-to marketplace for NFTs,” said the representative of nOFTEN.

nOFTEN, which uses the same blockchain technology that powers the cryptocurrency industry, will allow the users a democratic platform to showcase their creations. On the Etherlite blockchain, nOFTEN provides fast, scalable, low fees.

NFTs have become extremely popular as cryptocurrency enthusiasts, and backers, artists, musicians, and other creators are seeing a huge potential in the latest method to buy and sell digital art.

nOFTEN is also planning further to signup many more Bollywood celebrities, leading fashion designers and leading singers from the world in the coming weeks and months.