Why do Amitabh and Rajnikanth fancy Non Fungible Token ? What you should know about NFT

Hyderabad: From Amitabh Bachchan to Rajinikanth to Salman Khan and Sunny Leone to Dinesh Karthik, celebrities across professions have joined the bandwagon of NFT.

Non-fungible token or NFT is like digital memorabilia wherein the token uses blockchain to record the ownership of items like an image or a video or any other piece of art. As per reports, Bachchan’s NFT was autographed posters of his movies, Khan tied up with Bollycoin — which is a Bollywood NFT marketplace – to launch his NFT.

As per Bollycoin, the digital collectibles from Bollywood will be auctioned on Ethereum blockchain thus providing an innovative way for movie buffs to own NFTs of their favourite stars and celebrities. The steady rise of NFTs is being attributed to the surging popularity of cryptocurrencies. As per a report by TechStory around seven million Indians have invested a collective sum of over $1 billion (around Rs 7,380 crore) in cryptocurrencies.

What is NFT and how does it work?

These are virtual tokens that are stored digitally and it is unique in nature and it could include assets ranging from an image to an artwork to a song or a movie or even a GIF.

The token is stored on a blockchain and most are stored on Ethereum which is the market leader in cryptocurrency and is similar to Bitcoin.

Current regulations

While owning a Bitcoin or NFT is not illegal in India but the regulations surrounding these digital assets are still in the grey area. The Central government is working on ways to provide a structure for the cryptocurrency space and a bill in this regard should be present by the end of 2021. Similarly, the Reserve Bank of India is also working on launching an official digital currency by year end.

Where to buy?

One can look at platforms like BuyUCoin, Binace, WazixX to buy NFTs and one can either pay through the available wallets on the platform or pay via cryptocurrency.