What Is an NFT | Frenly Guru

An NFT, or non-fungible token, is a unique digital identifier recorded on a blockchain that certifies ownership and authenticity of a digital item, such as artwork, music, or video, and can be bought, sold, and traded like a physical collectible. Unlike cryptocurrencies, NFTs are uniquely identifiable and cannot be copied, substituted, or subdivided. With a market that has seen significant growth and volatility, NFTs have become a new class of investment asset, with proponents arguing they provide a public certificate of ownership and provenance for digital creations. However, critics have raised concerns about the market's potential for speculation and lack of regulation, leading to a collapse in 2022, with over 95% of NFT collections having zero monetary value by September 2023. For example, the [[nft-marketplace|NFT marketplace]] [[opensea|OpenSea]] has been at the forefront of this trend, with many artists and creators using the platform to buy, sell, and trade NFTs.