A non-fungible token (NFT) is a unit of data stored on a digital ledger, called a blockchain, that certifies a digital asset to be unique and therefore not interchangeable.[1] NFTs can be used to represent items such as photos, videos, audio and other types of digital files. Access to any copy of the original file, however, is not restricted to the buyer of the NFT. While copies of these digital items are available for anyone to obtain, NFTs are tracked on blockchains to provide the owner with a proof of ownership that is separate from copyright.
Since then,[when?] there has been an increased interest in using NFTs. Blockchains like Ethereum, Flow, Tezos, and dGoods have their own standards when it comes to supporting NFTs but each works to ensure that the digital item represented is authentically one-of-a-kind. NFTs are now being used to commodify digital assets in art, music, sports, and other popular entertainment.
The NFT market value tripled in 2020, reaching more than $250 million.[2] The rise of NFT transactions has also led to increased environmental criticism. The computation-heavy processes associated with proof-of-work blockchains, the type primarily used for NFTs, require high energy inputs that environmental activists[who?] argue are contributing to global warming. The carbon emissions produced by the energy needed to maintain these blockchains has forced some in the NFT market to rethink their carbon footprint.
Discription : A non-fungible token (NFT) is a unit of data stored on a digital ledger, called a blockchain, that certifies any digital file to be unique.[3] An NFT functions like a cryptographic token, but unlike cryptocurrencies such as bitcoin, are not mutually interchangeable, in other words, not fungible.[4] NFTs are created when blockchains string records of cryptographic hash, a set of characters that verifies a set of data to be unique, onto previous records therefore creating a chain of identifiable data blocks.[5] This cryptographic transaction process ensures the authentication of each digital file by providing a digital signature that is used to track NFT ownership.[5] However, data links that point to details like where the art is stored can die.[6] Also, ownership of an NFT does not inherently grant copyright to whatever digital asset the token represents.[7] While someone may sell an NFT representing their work, the buyer will not necessarily receive copyright privileges when ownership of the NFT is changed and so the original owner is allowed to create more NFTs of the same work.[8][9] In that sense, an NFT is merely a proof of ownership that is separate from a copyright.[10][11]
USES : NFTs of artworks are similar to autographed items.[12] The unique identity and ownership of an NFT is verifiable via the blockchain ledger. NFTs have metadata that is processed through a cryptographic hash function.[13]
Digital art
Digital art was an early use case for NFTs, because of the ability of blockchain technology to assure the unique signature and ownership of NFTs.[14] Digital artwork by Beeple sold for US$69.3 million in 2021.[15]
Collectibles
NFTs can represent collectibles like card collections but in a digital format. In February 2021, a Lebron James slam dunk NFT card on the NBA Top Shot platform sold for $208,000.[16]
Games
NFTs can also be used to represent in-game assets, such as digital plots of land, which are controlled by the user instead of the game developer. NFTs allow assets to be traded on third-party marketplaces without permission from the game developer. In February 2021, Axie Infinity recorded a sale of $1.5 million for digital land titles in a single sale.[17]
Music
Musicians can tokenize their work on blockchains using non-fungible tokens. For example in March 2021, American rapper Lil Pump did a partnership with the NFT platform Sweet to release a special NFT collection.[18][19][20]
Sports
Athletes are starting to take advantage of the NFT boom in various ways. In September 2019, pro-NBA player Spencer Dinwiddie tokenized his contract so that others can invest into it.[21][22][23] In March 2021, pro-tennis player Oleksandra Oliynykova offered prospective NFT buyers the lifetime rights to part of her right arm.[24][25][26]
Pornography
Some sex workers have also tokenized their pornographic work, allowing for the sale of unique content for their customers, though hostility from NFT marketplaces towards pornographic material has presented significant drawbacks for creators.[27][28]
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