What and Why You Need to Know about Non-Fungible Tokens (NFTs)

Non-fungible tokens (NFTs) are transferrable rights to digital assets, such as art, in-game items, collectables or music. The phenomenon and its markets have grown significantly since early 2021. They are bought and sold online, frequently with cryptocurrency, and they are generally encoded with the same underlying software as many cryptocurrencies. An NFT can be understood as a Certificate which confirm that the holder of certificate are owner of the asset. NFT are built on Blockchain, which can be understood as a public ledger (in the layman term) so anyone can check the real owner and transaction history. We try to understand the impact of NFTs in our society and how it is changing our world. Using daily data between January 2021 and December 2021, we can see that more users are buying NFT even when the price of Bitcoin and Ethereum are declining. A staggering 1.99 Million NFTs sold in the month of December (2021) on Polygon network alone. In July, less than 50 Thousand were sold. The results suggest that NFT have proven its value , this new Web3.0[2][3][4] assets class have proven valuable in our society.