What’s an NFT?

Written By Kelly Ann Collins

By Kelly Ann Collins, Into The Meta

If you are wondering WTF is an NFT, and you have tried to listen to financial experts talk about it but it still makes about zero sense, don’t worry – you are not alone. NFTs are new-ish to the world and lots of people are trying to figure out what the heck they are, and how to get some.

Here’s my TLDR on NFTs. …

To make a long story short, NFTs (or “non-fungible tokens”) are crypto-assets.

Since each NFT is unique — versus “fungible” like Bitcoin, Shib, Doge and Ethereum, which can be replaced by other identical items worth exactly the same amount — NFTs are used to represent and authenticate ownership of unique digital items.

Do you remember when Christie’s auction house sold its first piece of NFT-linked digital art by digital artist Beeple for $69 million? That was a historical moment.

But, besides Beeple-style art, which is probably one of the most well-known NFT examples, there are all sorts of items that can be NFTs:

  • Domain names
  • Music
  • VIP concert passes
  • Virtual real estate
  • Video game pieces

NFTs can only have one owner at a time and they’re secured by crypto blockchains. Nobody can modify the record of ownership. When you buy an NFT there is a contract that says you are the owner. There is no questioning who owns it. So, NFTs fix lots of problems – including sibling rivalry if you, say, are a musician with a little brother who likes to steal your mashups and tell the kids at school he made them. Lock that music down as an NFT and he’ll never swipe again. :-p

Here are some other NFT examples:

  • Lil Pudgy critters (this is one I recently purchased)
  • Unique digital artwork
  • Sneaker in a limited-run fashion line
  • In-game items
  • Digital collectables
  • Domain names
  • Event tickets
  • Essays

NFTs can be anything that is unique, digital, and needs provable ownership. It might sound odd, but even one of your tweets could be an NFT if you minted it! (Side note: “Minting an NFT” is what you are doing when you publish your item to the blockchain.)

At first, it sounds weird, yes, I’ll admit that I was confused at first, too. But when you start thinking about it, NFTs make a lot of sense. Want to learn more? Start browsing OpenSea. It’s one of my favourite NFT marketplaces, and pretty easy to use.

Let me know how it goes!

Cheers,
KAC

 

P.S. Check this video out for more:

Like what you read? Check out these articles!

Share your thoughts!