Non-fungible tokens, better known as NFT’s, seem to be all over the news. But what is an NFT and what purpose does it serve?
An NFT is a unique piece of digital art – essentially irreplaceable. Like an authentic baseball card. They’re part of the Ethereum blockchain network. Ethereum is a cryptocurrency, like Bitcoin. While Ethereum is the main one used “to mint” NFT’s, other cryptocurrencies can be used.
NFT’s typically bring one of two pieces of value:
NFTs are an unforgeable, instantly verifiable proof of authenticity, piece of anything digital. An NFT created by the most famous digital artist, Beeple (who sold his NFT for $69M) has value.
Or if it was owned by Elon Musk and resold, it would have value.
NFTs are proof of authenticity and ownership of digital goods. These goods could be an item, a card, a VIP pass, or a key that gives you access, exclusivity, and rewards into a community, products, games, events, etc. This is utility.
For instance, if you purchase a VeeFriends NFT, you have the opportunity to meet Gary Vaynernuk.
And there you have it.
NFT’s in under 200 words.