You may have heard of them already – NFTs or non-fungible-tokens, are the current craze spurring interest across the crypto world with their elaborate and somewhat unfounded domination of an entirely niched market.
NFTs are pieces of virtual property that can’t be interchanged or traded as a currency; instead, they’re entirely unique assets that are owned by one individual.
Whether it be one of a kind music videos, commissioned digital art, or simply our favorite memes – NFTs are combining blockchain technology and creativity.
How Do They Work?
Think of ‘ Starry Night’ by Van Gogh, whilst there is only one original painting, there’s thousands of reproductions that encompass clothing and prints owned by people across the globe. The person who owns the original edition has the right to allow reproductions as the documented ownership lies with the institution or individual who has tangible possession of the item.
NFTs take this a step further.
Taking the concept of tangible ownership and flipping it on it’s head, NFTs are entirely digital pieces that are auctioned off using the Ethereum blockchain. One lucky bidder at the auction will have the ownership rights of the piece granted to them and this will be recorded on the blockchain, leaving every expected ownership lying in the hands of the documented owner.
This digital piece can then be shared or completely withheld from external view – the opportunities are limitless and depend entirely on what the owner would like to do.
Are NFTs For You?
Fundamentally, NFTs represent the capability and malleability of blockchain technology, with NFTs being only the first flicker of its true potential.
If claiming ownership over the world’s hottest meme, a beautiful piece of art, or an unheard song piques your interest – or you’re a content creator looking to immortalise your creation on the blockchain forever – then an NFT is for you!