A digital collectible or an NFT, represents ownership or proof of authenticity of a unique digital item on the blockchain. Each token has a distinct value, much like a collector's item in the physical world.
Why do NFT’s matter?
Unique: Each NFT has unique information or attributes that set them apart from other tokens. This uniqueness is verified through the blockchain.
Ownership: When you purchase an NFT, you gain the ownership right of a unique piece of data on the blockchain. The details of the ownership, such as who owns the token and when the ownership was transferred, are transparent and can be tracked.
Interoperability: NFTs can be built using a standard called ERC-721, this standard allows for each token to have a unique value and information set.
Content Variety: NFTs can represent digital files, such as artwork, music, videos, items in a game, domain names, and even tweets.
Due to their unique characteristics and potential use cases, NFTs are revolutionizing various industries, notably digital arts, gaming, and entertainment.