Non-fungible tokens or ‘NFTs’ have been around for a while – the first being minted in 2014. However, India has only lately began to experience a surge in popularity of NFTs. Despite the mainstreaming of NFTs, the regulatory landscape around them continues to remain ambiguous.
What are NFTs?
NFTs, like cryptocurrencies, are based on blockchain technology. However, unlike cryptocurrencies, NFTs are unique and cannot be interchanged (i.e. they are non-fungible). To break it down with an example – one could exchange a bitcoin for another bitcoin and would end up with a bitcoin that is the same. This is similar to exchanging a ten rupee note for another ten rupees note – both notes represent ten rupees. However, NFTs cannot be duplicated, meaning that one cannot exchange an NFT for another NFT that is identical to the other, akin to exchanging an apple for an orange.
Please click here to read the full article by Nikhil George published in Techcircle.
