With reference to Non-Fungible Tokens (NFTs), consider the following statements: 1. They enable the digital…
With reference to Non-Fungible Tokens (NFTs), consider the following statements: 1. They enable the digital representation of physical assets. 2. They are unique cryptographic tokens that exist on a blockchain. 3. They can be traded or exchanged at equivalency and therefore can be used as a medium of commercial transactions. Which of the statements given above are correct?
1 and 2 only
2 and 3 only
1 and 3 only
1, 2 and 3
Solution
1 correct: NFTs can represent ownership of physical or digital assets. 2 correct: NFTs are unique cryptographic tokens on a blockchain. 3 incorrect: NFTs are non-fungible (not exchangeable at equivalency), so they cannot serve as a medium of exchange.