Nowadays, 'nonfungible tokens' are talked about in the context of

Nowadays, ‘nonfungible tokens’ are talked about in the context of

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digital assets on a blockchain

operations of 'banking correspondents' in rural areas

multifactor authentication security requirement in banking trans- actions

transactions through 'small finance banks'

Answer is Right!

Answer is Wrong!

This question was previously asked in

UPSC CAPF – 2022

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Non-fungible tokens (NFTs) are unique digital assets that represent ownership of a specific item or piece of media. They are stored on a blockchain, which is a decentralized digital ledger. The uniqueness and ownership of an NFT are verifiable through the blockchain.
Option A, “digital assets on a blockchain,” accurately describes the nature and technology underlying non-fungible tokens.

The key characteristic of an NFT is its non-fungibility, meaning each token is unique and cannot be replaced or exchanged for another identical item (unlike cryptocurrencies like Bitcoin, which are fungible).

NFTs can represent various digital items such as art, music, videos, virtual real estate, and in-game items. They have gained popularity, particularly in the art and collectibles markets.

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