Q. Which of the following statements is/are correct about Non-Fungible Tokens (NFTs)?
1.It is a digital asset that exists on a blockchain.
2.Each NFT has a unique digital signature.
3.It can also be used to represent people’s identities, property rights, and more.
Choose the correct answer from below given codes:

[A] 1 only

[B] 1 and 2 only

[C] 2 and 3 only

[D] 1, 2 and 3

Answer: D

Explanation: An NFT is a digital asset that exists on a blockchain. The blockchain serves as a public ledger, allowing anyone to verify the asset’s authenticity and ownership.

  • So unlike most digital items which can be endlessly reproduced, each NFT has a unique digital signature, meaning it is one of a kind.
  • NFTs are usually bought with the cryptocurrency Ether or in dollars and the blockchain keep a record of transactions.
  • While anyone can view the NFTs, the buyer has the status of being the official owner – a kind of digital bragging rights.
  • All kinds of digital objects – images, videos, music, text and even tweets – can be turned into an NFT.
  • Digital art has seen some high-profile sales, while in sports; fans can collect and trade NFTs relating to a particular player or team.
  • For instance, on the National Basketball Association’s Top Shot platform, enthusiasts can buy collectible NFTs in the form of video highlights of moments from games.
  • While these highlights can be seen for free on other platforms such as YouTube, people are buying the status as the owner of a particular NFT, which is unique due to the digital signature.