What are NFTs?

Here is a brief explanation of NFTs: Non Fungible Tokens or NFTs, are verifiably unique representations of digital and physical goods. A digital ledger on the blockchain. Each NFT generally differs in makeup, and therefore likely differs in value as well. 

In the physical world many currency's are fungible, like the U.S. dollar. No value is forfeited if a person trades any given paper U.S. dollar for a different paper U.S. dollar. On the other hand, something such as artwork is generally nonfungible. The “Mona Lisa” is not of equal value to “The Persistence of Memory,” as both artworks are unique, deriving value as such. 

Based on distributed ledger technology, NFT crypto assets serve as a method of authentication for buyers of unique items, proving aspects such as ownership. Digital contracts are also derived and have many utilities for creators and users. NFTs have potential for other use cases as well, such as companies tracking their internal resources or platforms verifying subscriptions and use. With this new trend, NFTs became much more well known in 2020 and 2021.