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What is NFT?
NFT, the acronym for a non-fungible token, is a unit of data stored on a digital ledger called a blockchain that certifies a digital asset to be unique and therefore not interchangeable. NFTs can be used to represent items such as photos, videos, drawings, audio, artworks, tweets, animated GIFs, songs, games and other types of digital files.
NFTs are digitally unique due to different attributes, hence, two NFTs are never the same.
NFTs, seen as the start of a new age of digital art, are unique units of data stored on a blockchain and can be used to represent easily reproducible items to establish proof of ownership and authenticity.
Since each NFT is unique, it acts as a collector’s item, although many people also buy them as speculative investments. However, the NFT written on a blockchain cannot be altered or reproduced as blockchains are digital ledgers, where entries cannot be changed, once entered and saved.
NFTs allow people to buy and sell ownership of the unique digital assets in cryptocurrencies and keep track of who owns them using the Blockchain. An NFT can be sold, and every time it is sold, there will be a blockchain entry of transaction, so the provenance of the NFT is always known. NFT typically enables content creators to launch their own NFT store or marketplace under their domain name.
Sales of NFTs
In 2021, Twitter CEO Jack Dorsey’s first-ever tweet — “just setting up my twttr”— was sold as an NFT for $2.9 million. Among the biggest beneficiaries, digital artists like Beeple (Mike Winkelmann) entered the record books when a JPG file he created as an NFT sold for $69.3 million, the highest price ever paid for a piece of artwork that exists only digitally. The rock band Kings Of Leon’s eighth album, “When You See Yourself”, became the first major rock album to be released as an NFT.
In October 2020, the NBA launched NBA Top Shot, a marketplace where fans can buy and sell basketball-related NFTs — which can be anything from a still photo, a GIF to the highlight of a dunk with embedded graphics.