Non-Fungible Tokens (NFTs) are designed as a way for digital files to be secured in a way that ensures ownership and creates scarcity. They are blockchain-held tokens that represent a unique asset – whether physical or digital. NFTs are secured on cryptocurrency blockchains, trading using Ethereum, Solana, Wax and other tokens. Like physical art an NFT can be sold but the artist can retain the copyright, or they can offer it to the buyer, or decide on a percentage of secondary sales an owner can have.
Essentially, NFTs can represent any form of digital file, whether that’s a jpeg of a piece of art, a video, or even real estate. Turning these files into ‘tokens’ and securing them on a blockchain make buying, selling and trading these files efficient and reduce fraud.