NFTs are one-of-a-kind digital products that are registered on a blockchain. Every NFT is a unique property that you can’t duplicate, in contrast to exchangeable cryptocurrencies. You can use NFTs to symbolize anything seen online, from works of art to songs to memes and beyond. The standard procedure for producing an NFT entails minting a one-of-a-kind digital item. For example, an original artistic creation, and then recording it on a blockchain. There is always some kind of charge you have to pay in this procedure. But, the exact amount may vary based on the blockchain platform and the delicacy of the property being formed. NFT’s value is set by supply and demand after it is generated and recorded on the blockchain and then traded on multiple online markets. On the marketplace, NFTs may range in price from a few hundred dollars to tens of millions.
Let’s understand with an example. If JM gives JK a gold bar, JK will take it. But, if JK tries to give JM a silver bar in exchange for the same grams of gold, JM will not accept it. Do you know why? Just because the value of a silver bar will not match that of a gold bar. Similarly, the gold bar in the above example represents Non-fungible tokens. It has its own unique identity and value that cannot be exchanged or replaced.