A Non-Fungible Token (NFT) is a unique digital asset that represents ownership of a specific item or piece of content on a blockchain. Unlike cryptocurrencies such as Bitcoin or Ethereum, which are interchangeable, NFTs are indivisible and verifiably distinct. They are commonly used for digital art, collectibles, virtual real estate, in-game assets, and intellectual property rights.

NFTs leverage blockchain technology to ensure transparency, security, and verifiable ownership. Key components of NFTs include:

• Blockchain Ledger: Records ownership and transaction history in a decentralized manner.
• Smart Contracts: Automate transfers and enforce ownership rights through self-executing code.
• Token Standards: Most NFTs are built on Ethereum’s ERC-721 or ERC-1155 standards, defining how they function.
• Metadata & Digital Content: Each NFT is linked to metadata that provides details about the asset, such as the creator, history, and associated digital file.

NFTs can be bought, sold, or traded on specialized marketplaces, with ownership and authenticity recorded on the blockchain.

NFTs revolutionize digital ownership by allowing creators to monetize their work directly, ensuring authenticity and scarcity. They provide a new economic model for artists, musicians, game developers, and brands by enabling tokenized assets that can be owned, traded, and collected. The ability to embed royalties in smart contracts also ensures that creators receive a percentage of resale transactions.

Cloud platforms play a crucial role in NFT ecosystems by hosting metadata, facilitating smart contract interactions, and providing scalable infrastructure for NFT marketplaces and applications. Cloud-based storage solutions ensure the secure preservation of NFT-linked digital assets.