What are Non-Fungible Tokens (NFT)?

1. A Non-Fungible Token or NFT is a unit of data which is stored on a digital ledger (blockchain) and can be sold and traded.

2. NFT data units may be associated with digital files such as photos, videos, and audio.

3. Each NFT may represent a different underlying asset and can have a different value


4. NFT ledgers claim to provide a public certificate of authenticity or proof of ownership.

5. Digital art is currently the most common use of the NFT.

(Content on this page is courtesy Centre for Investment Education and Learning (CIEL). Contributions by Girija Gadre, Arti Bhargava and Labdhi Mehta)