What you need to know about NFTs, the collectible digital tokens that are selling for up to millions online

What you need to know about NFTs, the collectible digital tokens that are selling for up to millions online

Non-fungible tokens or NFTs “” products that operate as digital assets “” have grown to encompass a $250 million market, according to a 2020 report from tech tracking company L'Atelier BNP Paribas and nonfungible.com.

NFT investments rose 299% in 2020, gaining popularity as cryptocurrencies like Bitcoin continued to boom, according to the report. 

However, NFTs operate differently from digital currencies. Unlike popular cryptocurrencies like Bitcoin and Ether, NFTs cannot be directly exchanged with one another.

What is an NFT?

NFTs are a special class of digital assets that cannot be exchanged with one another for equal value or broken down into smaller values like most currencies.

No one NFT is the same as another, they are characterized by their unique qualities, as well as authenticity. The digital tokens often operate as a type of collectors item and cannot be duplicated.

NFT products encompass a whole range of elements, including anything from crypto artwork and digital fashion items to collectible sports cards, virtual real estate and characters.

Globally recognized brands like Nike, Louis Vuitton, as well as the NBA have already begun generating NFT-based consumer goods and services.

Some of the top traded NFT brands, according to digital trading site Crypto Slam, include NBA Top Shot, Crypto Punks, and