Recently, NFT’s became popular and are shaking up art and gaming. They are the latest cryptocurrency phenomenon to go mainstream. One of the auction house of company Christie sold the first-ever NFT artwork which is a collage of images by digital artist Beeple for a shocking $69.3 million (see the image below).
So, what exactly are NFT’s?
NFT’s or Non-Fungible Token are digital items that can be bought and sold using blockchain technology. However, they are not fungible, making them a unique or different type of asset. They are based on value and popularity. These files live in blockchain and are able to verify ownership of a work of digital art. The buyers typically get limited rights to display the digital artwork they represent, but in many ways, they’re just buying bragging rights and an asset they may be able to resell later.
NFT’s transform digital works of art and other collectibles into one-of-a kind, verifiable assets that are easy to trade on the blockchain. For example, think of Pokémon cards, rare coins or a limited-edition pair of Jordans: NFTs create scarcity among otherwise infinitely available assets — and there’s even a certificate of authenticity to prove it. NFTs are typically used to buy and sell digital artwork and can take the form of GIFs, tweets, virtual trading cards, images of physical objects, video game skins, virtual real estate and more.