The blockchain is the technology used by non-fungible tokens (NFTs). The distributed nature of blockchains makes it difficult to hack them. However, this doesn’t mean that they are immune from theft. In February 2022, an estimated $1.7 million worth of NFTs was stolen from a user of OpenSea. This included 254 tokens, including those from Bored Ape Yacht Club and Decentraland. Another collector lost $2.2 million in Bored Ape tokens in a separate hack. The security of blockchain makes it difficult to retrieve stolen items.
Non-fungible tokens are an emerging market and their value continues to increase. Many artists, collectors, and investors are using them to create new content and acquire assets through blockchain-based property interests. The potential for the underlying technology is enormous. However, the risks associated with it make it worth watching.
While fungible assets can be easily duplicated, non-fungible assets are unique and cannot be duplicated. NFTs can be anything from digital artwork to virtual real estate. Tokenizing intangible assets allows them to be traded more efficiently and with lower risks of fraud. The NFT blockchain is still a relatively new technology, but it has the potential to transform our lives.
In addition to its flexibility, NFTs are also highly flexible and can be sold at any time. The majority of NFTs use the Ethereum blockchain. To be able to function on the blockchain, NFTs must store extra information. This additional information makes NFTs unique from other digital objects.
