📚Introduction

The emergence of cryptocurrencies has been one of the most significant developments in the history of money and finance. Cryptocurrencies are digital assets that use blockchain and cryptography to secure immutable transactions and control the creation of new units. However, cryptocurrencies are not limited to being a medium of exchange or a store of value like Bitcoin and Ethereum. They can also represent assets like digital art, music, games, collectables, etc. These types of assets are known as non-fungible tokens (NFTs), which are unique and indivisible tokens that can be verified and traded on blockchain platforms. NFTs have opened up new possibilities for creativity, ownership, and monetization in the digital realm.

NFTs operate by using smart contracts, which are self-executing programs that run on the blockchain and define the rules and conditions for creating and transferring the tokens. When an NFT is created, it is assigned a unique identifier and metadata that describe its attributes and characteristics. The NFT is then minted or issued on the blockchain, creating a permanent record of its ownership and provenance. The owner of the NFT can then sell, trade or transfer a token to another person or use a digital wallet to store it for a certain period. The transaction is then verified and recorded on the blockchain, ensuring that the ownership and authenticity of the NFT are maintained.