The value of an NFT is determined by the attribute it represents. A digital piece of original artwork or scanned memorabilia is frequently used. The main NFT does not always contain the object's digital form; rather, it acts as a point of reference for the object's existence on the blockchain. Simply put, the NFT acts as a deed stating that you own the object.

The value of an NFT stems from its capacity to be freely and safely traded on the blockchain, which is not achievable with other digital ownership solutions now available. The NFT refers to the digital property's location on the blockchain, but it does not necessarily include it. For example, if you swap one bitcoin for another, you'll get the same result. When you buy a non-fungible item, such as a movie ticket, you can't exchange it for another because each ticket is unique to a given time and location.

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