UPSC PRELIMS · ECONOMICS · DIGITAL ASSETS AND NFTS

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?

Take a breath. Choose one. Press A–D on your keyboard if you like.

EXPLANATION

NFTs can represent ownership or claims associated with physical or digital assets and are unique blockchain tokens; unlike fungible money, they are not interchangeable at equivalency.

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