Musician Grimes recently sold her crypto art through non-fungible tokens or NFTs for $5.8 million, while Chris Torres, creator of Nyan Cat, a famous internet meme, sold a one-of-a-kind version of his viral GIF for 300 ethereum or around $600,000. Artist Mike Winkelmann, also known as Beeple, sold one of his works for $6.6 million.
The NFT space recently exploded with many musicians and digital artists exploring the route to sell their creations in the form of collectibles or art. We tell you what non-fungible tokens are and how they work.
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What are non-fungible tokens?
A non-fungible token (NFT) is a cryptographic token that represents something unique, and has an individual characteristic that sets it apart. Owning an NFT is like owning a one-of-a-kind work of art or a collectible antique. NFTs are unique tokens or digital assets that generate value because of their uniqueness.
For example, if two individuals hold a bitcoin each, they can exchange their bitcoins, which are replica of each other and have the same value. However, NFTs are not interchangeable, as they are more like pieces of art where each and every token is unique in itself. While bitcoins are also digital