With reference to Non-Fungible Tokens (NFTs), consider the following statements

2022

“Blockchain,Cryptocurrency”, Science and Technology

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 ?

(a)

1 and 2 only

(b)

2 and 3 only

(c)

1 and 3 only ‘

(d)

1, 2 and 3

Answer:

(a)

Factual

Explanation

Statement 3 may be wrong since the word Non-fungible itself insinuate that it cannot be used as a medium of exchange because it will not be divisible easily and its individual parts value will not equal to each other. So mutual substitution will difficult therefore statement 3 is wrong and by elimination answer should be “A”.