{"id":13074,"date":"2023-07-14T03:05:01","date_gmt":"2023-07-13T21:35:01","guid":{"rendered":"https:\/\/vajiramandravi.com\/current-affairs\/?p=13074"},"modified":"2025-04-02T00:08:17","modified_gmt":"2025-04-01T18:38:17","slug":"what-are-non-fungible-tokens-nfts","status":"publish","type":"post","link":"https:\/\/vajiramandravi.com\/current-affairs\/what-are-non-fungible-tokens-nfts\/","title":{"rendered":"What are Non-Fungible Tokens (NFTs)?"},"content":{"rendered":"<h2><strong>About Non-Fungible Tokens (NFTs):<\/strong><\/h2>\n<p>&nbsp;<\/p>\n<ul>\n<li>NFTs are <strong>unique cryptographic tokens<\/strong> that exist <strong>on a blockchain and cannot be replicated.<\/strong><\/li>\n<li>They can <strong>represent digital or real-world items<\/strong> like artwork, photograph, song,\u00a0 video, real estate, individuals&#8217; identities, property rights, and more.<\/li>\n<li>Thus, <strong>NFTs are assets that have been tokenized via a blockchain.<\/strong> They are<strong> assigned unique identification codes and metadata <\/strong>that distinguish them from other tokens.<\/li>\n<li>The term <strong>\u2018non-fungible\u2019 simply means that each token is different as opposed to a fungible currency such as money<\/strong> (a ten-rupee note can be exchanged for another and so on).<\/li>\n<li><strong>NFTs can be traded and exchanged for money, cryptocurrencies, or other NFTs<\/strong>\u2014it all depends on the value the market and owners have placed on them.\u00a0<\/li>\n<li><strong>NFT transactions are recorded on blockchains<\/strong>, which is a digital public ledger, with<strong> most NFTs being a part of the Ethereum blockchain.\u00a0<\/strong><\/li>\n<li><strong>NFTs became popular in 2021<\/strong>, when they were beginning to be <strong>seen by artists as a convenient way to monetise their work.<\/strong><\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<h3>What is Blockchain Technology?<\/h3>\n<ul>\n<li>A blockchain is essentially a <strong>digital ledger of transactions that is duplicated and distributed across the entire network of computer systems<\/strong> on the blockchain.\u00a0<\/li>\n<li><strong>Each block in the chain contains a number of transaction<\/strong>s, and every time a new transaction occurs on the blockchain, a r<strong>ecord of that transaction is added to every participant\u2019s ledger.<\/strong><\/li>\n<li><strong>Decentralized blockchains are immutable<\/strong>, which means that the data entered is irreversible.\u00a0<\/li>\n<li>This <strong>means if one block in one chain was changed, it would be immediately apparent<\/strong> it had been tampered with.<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<hr \/>\n<h3>Q1)\u00a0What are Cryptocurrencies?<\/h3>\n<p>A cryptocurrency is a digital or virtual currency secured by cryptography, which makes it nearly impossible to counterfeit or double-spend. Many cryptocurrencies are decentralized networks based on blockchain technology\u2014a distributed ledger enforced by a disparate network of computers. A defining feature of cryptocurrencies is that they are generally not issued by any central authority, rendering them theoretically immune to government interference or manipulation.<\/p>\n<p><strong>Source:<\/strong>\u00a0<a href=\"https:\/\/www.business-standard.com\/india-news\/google-unveils-nft-policy-for-play-store-to-incorporate-tokens-into-games-123071300157_1.html\" target=\"_blank\" rel=\"nofollow noopener\"><u>Google unveils NFT policy for Play Store to incorporate tokens into games<\/u><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>NFTs are unique cryptographic tokens that exist on a blockchain and cannot be replicated.<\/p>\n","protected":false},"author":5,"featured_media":13075,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1],"tags":[],"class_list":{"0":"post-13074","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-upsc-prelims-current-affairs","8":"no-featured-image-padding"},"acf":[],"_links":{"self":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/13074","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/comments?post=13074"}],"version-history":[{"count":0,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/13074\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media\/13075"}],"wp:attachment":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media?parent=13074"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/categories?post=13074"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/tags?post=13074"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}