The basics of NFTs. Non-fungible-token (NFT) sales reached $2.5 billion in 2021, up from $13.7 million a year earlier, once again confirming the immense value of the new industry. There were more than 40,000 sales in March 2021 alone.
This presents a lifetime opportunity for investors seeking value. Like traditional artwork, a simple NFT today could be worth millions tomorrow. However, many recommend getting cryptocurrency insurance to protect your assets.
Interested? The Expensivity team explains the basics of NFTs in one of their recent blogs, even providing useful tips for those who wish to get started in the field. The following are excerpts from the blog.
What are NFTs?
Non-Fungible Tokens (NFTs) are unique and non-interchangeable data units stored on a digital ledger. Moreover, the term “non-fungible” actually refers to an item’s unique properties that make it unexchangeable with something else.
How Do NFTs Work?
Non-fungible tokens use digital keys to secure items using the same technology as cryptocurrency. A public key serves as the ownership assignment, while a private key authorizes a change in ownership. Meanwhile, the blockchain maintains tamper-proof ledger transactions and serves as a reference in case of misunderstandings.
Any digital creation can become an NFT, whether a photo, video, social media post, blog post, comment on a forum, etc.
Check out the Expensivity infographic to learn more basics of NFTs, what they are, how they work, the benefits, and how to monetize your digital creations through NFTs.