Concept: June 15, 2021. What is an NFT?

NFT stands for non-fungible token. It is a unique digital asset (token) which exists in a blockchain. The word "non-fungible" means that it cannot be exchanged for another one (like bitcoin or a dollar). It achieves that by having a unique digital signature.

Due to its uniqueness, an NFT can be a piece of art, a video, a collectible, music or even a tweet. A collector can have multiple NFT's and even a digital museum may be created out of NFT's.

The Ethereum blockchain is the one that hold most NFT's, however, the HIVE blockchain can also hold NFTs. The owner of the NFT will get the ownership rights to the NFT and the property will be registered in the blockchain. NFT's can only have one owner at a time. Just as the ownership is registered in the blockchain, the sale of an NFT (and the change in ownership) would also registered in the blockchain. The creator of the NFT can insert its name or signature in the art or in the metadata.

This post is intended to only raise awareness. In order to make actual financial decisions please contact your financial advisor and/or tax advisor prior to making the decision.

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