The traceability of NFT transactions is guaranteed through the use of blockchain technology. NFTs are typically created, bought, and sold on blockchain platforms, which record every transaction on a decentralized ledger. These ledgers are publicly accessible and transparent, allowing anyone to see the history of a particular NFT.
Moreover, every NFT has a unique digital signature, or crypto token, that identifies it and distinguishes it from other tokens on the blockchain. Each time an NFT is transferred, the transfer is recorded on the blockchain, along with the digital signature of the sender and the receiver. This creates an unbreakable chain of custody that ensures the traceability of every NFT transaction.
Finally, because blockchain technology is decentralized and secure, it is very difficult (if not impossible) for someone to manipulate the ledger or alter the history of a particular NFT transaction. As a result, the traceability of NFT transactions is highly reliable and transparent, making it an ideal technology for buying, selling, and collecting unique digital assets.
