The blockchain uses a cryptographic algorithm to create a unique digital signature or hash for each NFT, which ensures that each NFT is one-of-a-kind and cannot be duplicated or forged.
The ownership of an NFT is verified through the blockchain, and the transaction history of the NFT is recorded on the blockchain, which provides a permanent and immutable record of ownership and transfer
The value of an NFT is determined by the market demand for the specific digital asset that it represents, as well as the perceived scarcity, uniqueness, and authenticity of the NFT.
NFTs can be used to create new revenue streams for artists, musicians, and other creators who can sell their digital creations directly to collectors and fans, without the need for intermediaries like record labels or art galleries.
NFTs can also be used for other purposes, such as tokenizing physical assets, creating digital identities, or creating unique virtual experiences.