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. Statement 1: Non-Fungible Tokens (NFTs) can be used to represent ownership or authenticity of various assets, both digital and physical. For example, an NFT could represent ownership of a piece of real estate or a physical artwork, thus enabling the digital representation of physical assets. This statement is correct. 2. Statement 2: NFTs are defined by their uniqueness. Each NFT has distinct information recorded in its smart contract, making it different from any other token. They are cryptographic tokens secured by cryptography and recorded on a blockchain (like Ethereum). This statement is correct. 3. Statement 3: The defining characteristic of NFTs is that they are *non-fungible*, meaning each token is unique and cannot be exchanged at equivalency with another token (unlike fungible tokens like Bitcoin or traditional currency, where one unit is identical to another). Because they are not interchangeable on a like-for-like basis, they are generally not suitable as a standard medium of commercial transactions in the way fungible currencies are. This statement is incorrect. 4. Since statements 1 and 2 are correct, the correct option is (A).