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With reference to Non-Fungible Token (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?

UPSC · 2022 · Economy
Question:
With reference to Non-Fungible Token (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?

Options

1 and 2 only
2 and 3 only
1 and 3 only
1, 2 and 3
Answer: 1 and 2 only

Explanation:
NFTs are unique blockchain-based tokens that can represent ownership of digital or physical assets. They are non-fungible and cannot be exchanged at equivalency like money.

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