What is an NFT?


What is an NFT?

You may have heard about non-fungible tokens or NFTs. If you haven’t, well, that’s fine. But we’re still going to talk about them.

So, NFTs.

NFTs are digital assets that have been around since 2014, and have grown popular among digital artists, gaming companies, and investors that their overall market was worth $41 billion in 2021.

Representing both tangible and intangible items, NFTs have provided today’s artists and content creators an innovative way to authenticate and directly sell their works online.

NFTs are often created or minted from products such as artworks, music, videos, in-game items, or real estate. Tweets also count. Just look at Twitter co-founder Jack Dorsey’s $3-million NFT feat.

Anyways, non-fungible means you can’t exchange for the same thing. NFTs are built with the same programming as Bitcoin and Ethereum, but they are more like trading cards. Trade one NFT, and you get something else.

Still, the copyright and reproduction rights stay with the creator. So while an NFT grants you ownership of, let’s say, a van Gogh, you don’t own the original work. Not trying to be mean here. That’s just how it works.

Today, most NFTs are bought with Ethereum, which you can convert from US dollars on certain cryptocurrency exchanges. You can also hold NFTs on blockchains like Solana and Cardano.

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