# What are NFT's?

An NFT, short for Non-Fungible Token, is a unique and indivisible digital asset that is created using cryptographic hashing on the blockchain, a distributed and secure digital ledger. Unlike traditional cryptocurrencies such as Bitcoin or Ethereum, which are fungible and can be exchanged for one another, NFTs are distinctive and cannot be interchanged with identical tokens. Each NFT possesses its own distinct set of characteristics, making it one-of-a-kind.

The process of creating NFTs involves using smart contracts, which are self-executing contracts with the terms of the agreement directly written into code. These smart contracts define the specific attributes and properties of the NFT, making each token unique. This uniqueness is what gives NFTs their value and appeal.

One critical feature of NFTs is that they cannot be broken down into smaller units like traditional cryptocurrencies. For instance, one can divide one Bitcoin into smaller fractions like millibitcoins or satoshis. However, an NFT cannot be divided, and its entirety represents the entire asset.

NFTs have garnered significant attention due to their ability to establish verifiable ownership and authenticity of digital assets. They have found various applications across different industries, such as:

1. Art: NFTs have revolutionized the art world by enabling digital artists to tokenize their artwork. Each NFT represents a unique piece of digital art, and ownership can be easily traced through the blockchain, providing artists with a way to prove ownership and receive royalties on future sales.
2. Media: Musicians, writers, and filmmakers have started using NFTs to tokenize their music, books, videos, and other creative works. This allows them to directly engage with their audience, establish ownership, and potentially monetize their creations.
3. Gaming: NFTs are increasingly being used in gaming to represent in-game items, characters, and assets. Players can buy, sell, and trade these NFTs on various platforms, creating a vibrant and decentralized virtual economy.
4. Collectibles: NFTs have revitalized the concept of collectibles, where unique digital assets, such as virtual trading cards or virtual pets, can be owned, traded, and collected.
5. Fashion: NFTs are also making their way into the fashion industry, allowing designers to tokenize virtual clothing and accessories, giving users the ability to showcase and trade exclusive digital fashion items.

The blockchain records essential information related to each NFT, including details such as the creator's identity, the creation date, the history of ownership, including purchase and sale transactions, the price at which the NFT was bought or sold, and the current owner. This transparent and immutable data on the blockchain serves as an authoritative source for verifying the authenticity and ownership of the NFT.

While NFTs have gained tremendous popularity, they are still a relatively new technology, and ongoing research and exploration are revealing new use cases and utilities. As the NFT ecosystem continues to evolve, we can expect to see further innovation and expansion into different industries, providing new opportunities and challenges for creators, investors, and consumers alike.
