What exactly are NFTs?

NFTs (or “non-fungible tokens”) are a special kind of cryptoasset in which each token is unique — as opposed to “fungible” assets like Bitcoin and dollar bills, which are all worth exactly the same amount. Because every NFT is unique, they can be used to authenticate ownership of digital assets like artworks, recordings, and virtual real estate or pets.

You can think of NFTs as being kind of like certificates of authenticity for digital artifacts. They’re currently being used to sell a huge range of virtual collectibles, including:

- NBA or College virtual trading cards
- Music and video clips from famous musicians or artists
- The original “nyan cat” meme
- A tweet by Dallas Mavericks owner and entrepreneur Mark Cuban
- Virtual real estate in a place called Decentraland

Think of yourself as a Collector of Digital Art

Everything has value. The question really becomes how do we determine it's value. Digital or Real, all art has always been challenging to put a price on what it's worth. One person's gold, is another person's garbage. Ultimately it comes down to what someone is willing to pay to own something unique.

Along with value, NFTs have raised fascinating philosophical questions about the nature of ownership. Wondering why digital artifacts that can be endlessly copied and pasted have any value at all? Proponents would point out that most kinds of collecting isn’t based on inherent value. Old comic books were produced for pennies’ worth of ink and paper. Rare sneakers are often made out of the same materials as worthless ones. Some paintings hang in the Louvre, others end up in thrift shops.

As we evolve into a truly digital world, we are seeing the transformation of how we interact with the world, and certainly art is at the center of it all.

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