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UPSC PYQPrelims 2022

Civil Services Examination · Question 69

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?

  1. 1 and 2 only
  2. 2 and 3 only
  3. 1 and 3 only
  4. 1, 2 and 3
Show answer & explanation

Answer: (A) 1 and 2 only

Explanation

NFTs are unique blockchain tokens representing digital or physical assets. Being non-fungible, they cannot be exchanged at equivalency like currency.