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What Are Non-Fungible Tokens (NFTs)?

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NFTs are digital assets with distinctive identifiers, much like a signature. They are stored in a blockchain record and each NFT is traced to its unique owner. Various frameworks are available for creating NFTs. The most popular are ERC-721 and ERC-1155, which are based on the Ethereum blockchain. Other blockchains, for instance, the BNB Chain, have their own standards, called BEP-721 and BEP-1155.

Non-Fungible Tokens are a form of cryptocurrency that represents a unique asset. They can be entirely digital or they can be tokenized versions of real-world assets. NFTs are also unique in that they are not fungible, unlike currencies. This is important because fungible assets are easily exchanged amongst each other, while non-fungible assets are not.

NFTs are part of a blockchain ledger that cannot be altered. This makes them particularly useful for protecting intellectual property, where it can be difficult and expensive to keep track of. But NFTs also have a wider range of applications than just art. Currently, many of these applications are experimental, and there are still significant hurdles to overcome before widespread adoption of these technologies.

NFTs have many benefits for artists. For one, NFTs can cut down the need for intermediaries, who take a cut of profits. Because NFTs are based on a blockchain, they are much faster and more efficient for artists.

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