Q. Consider the following statements regarding NFTs:
1.NFTs are unique digital assets that represent ownership of items and are assigned unique identification codes on a blockchain.
2.Unlike cryptocurrencies, NFTs are fungible, meaning one unit can be swapped for another identical unit of the same value.
3.NFTs can be used to represent physical real-world items, such as real estate, as well as digital art.
Which of the statements given above are correct?
Answer: B
Notes:
Explanation:
- Statement 1 is correct: They are distinct digital tokens with metadata that proves ownership.
- Statement 2 is incorrect: NFTs are Non-Fungible (unique). Fungible items are things like cash or Bitcoin where every unit is the same.
- Statement 3 is correct: NFTs are increasingly being used to tokenize physical assets like collectibles and property.
