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In layman's words, 'non-fungible' refers to a component that cannot be replaced with one of equal worth. Let's take the most common example: a Rs.2000 note may be exchanged for four Rs.500 notes or twenty Rs.100 notes, making the Rs.2000 note a fungible token. If Sachin Tendulkar signed the Rs. 2000 note, however, it would become difficult to exchange at the same value. As a result, it is a Non Fungible Token. The value of an NFT, like any other asset, might rise or fall in the future depending on the conditions.

NFTs may be anything digital that can be acquired and transformed into an AI, including music, artwork, and even your heart. However, providing digital art such as photographs, films, and GIFs is a large component of the current NFT craze. Other materials aren't like NFTs. Each NFT has a digital signature that prohibits them from being confused with or especially in comparison to one another (hence, non-fungible). NFTs are fundamentally digital replicas of real-world collectibles. As a result, the purchaser obtains a digital file instead of a genuine oil painting to decorate.

They also get the property's exclusive privileges. True, NFTs may only be owned by one person at a time. It's straightforward to authenticate ownership and transfer tokens between owners since NFTs provide unique data. They can also be utilised by the owner or author to store specific information. For example, artists can authenticate their work by including their authorization in the NTFs data. 

NFT’s are built on blockchains

NFTs are based on blockchains, with the Ethereum blockchain being the most popular. Ethereum is a cryptocurrency that is similar to dogecoin and bitcoin, however it differs in that it can allow NFTs.

NFTs have a limited supply

Whether it's a piece of digital art or music, "minting" it as an NFT allows you to verify ownership. The value of content can grow steadily by imposing a cap on its supply.

NFT’s are digital receipts or signatures

Including art in an NFT allows a creator to create a digital signature that cannot be altered or removed. As a collector, you may consider NFTs to be the digital equivalent of the certificate you'd receive if you made a physical acquisition. A digital file, along with the art that accompanies an NFT, can be copied as many times as you like. NFTs, on the contrary, are designed to provide you with something you won't find elsewhere: possession of the work (though the artist can still retain the copyright and reproduction rights, just like with physical artwork). To look at it another way, in terms of the physical art collecting, anyone can purchase a Monet print. However, the original may only be owned by one individual.

What Are NFTs Used For?

Thanks to blockchain technology and NFTs, artists and content producers have a once-in-a-lifetime opportunity to monetize their work. Artists, for example, are no longer reliant on exhibitions or traders to distribute their work. Alternatively, the artist may sell it directly to the buyer as a non-traditional toy, in order to keep a bigger percentage of the earnings. Artists may also incorporate copyrights into their technology so that they receive a portion of the proceeds when their creation is transferred to a new buyer. Since most artists do not make more cash after their actual purchase, this is a useful feature.

The fundamental aim of NFT technology is ensuring that “should the piece of digital content be duplicated or shared, the claim of the legal owner over the original remains clear and transparent.

Suppose that an artist creates a film that he believes has the capability to be published as nonfiction. He posts the video on a bitcoin website for everyone to view. In a computerised auction, someone buys the work for $1 million. The artists receive a portion of the funds. Someone now believes that art will have significantly greater value in the future. Let's imagine he buys it from the original buyer for $2 million. At this stage, a share of the revenue from the second purchase goes to the original creator. For the first buyer, it's a fantastic investment.

The next buyer purchases it because he feels the price of the NFT will continue to grow. NFT is comparable to stocks and other similar securities in terms of how it operates. Besides, a stock, in which the underpinning fundamental principle is the corporation's profitability, and NFT's underlying fundamental assumption is the bandwagon effect.  The bandwagon effect is an economic phenomenon in which a rise in the price of an item does not lead to a drop in demand. In fact, the larger the incentive, the more desirable the commodity and the higher the demand. When a consequence, as an NFT's popularity develops, it will receive more prizes. We can say that popularity is the sole criteria for the determination of the prize of an NFT.

Lawyered’s take  一

Owing to an expansion in the region to facilitate user-friendly operations, NFTs have developed beyond being a staging point for visual art to approaching the conventional industries of gaming, entertainment, banking, and investing. Although there are certain obstacles to overcome, there are already a number of players in the industry that are aiming to provide seamless user experiences. Gasless transactions, multi-chain transfers, interoperability, accessibility, and scalability solutions let potential non-native crypto and blockchain users enter the industry and efficiently navigate it.

Resources 一 

•  https://ijpiel.com/index.php/2021/08/24/the-future-of-non-fungible-tokens-in-india/

•  forbes.com/advisor/investing/nft-non-fungible-token/  

•  https://www.theverge.com/22310188/nft-explainer-what-is-blockchain-crypto-art-faq 

•  https://rainmaker.win/nfts-in-india-a-fad-or-the-future/