What are NFTs?
NFT stands for Non-Fungible Token. Fungible means that a good or asset can be exchanged or interchanged for another good or asset that is the same type for exactly the same value. Examples of fungibles include US dollars, gold, Bitcoin or Ether.
On the flipside non-fungibles like NFTs have attributes that make it unlike something in the same category or asset class. Examples of traditional/tangible non-fungibles include original artwork, unique classic cars, custom clothing and custom watches. Examples of digital non-fungibles include digital artwork, unique items in computer games or online trademarks.
NFTs are usually either unique or produced in very limited numbers, when you purchase an NFT you effectively receive the certificate of ownership for that piece of artwork or music.
Identifiable on a Blockchain
Importantly NFT’s are digital assets that are identifiable on a blockchain. NFT’s are regulated using smart contracts, these are used to track and verify the current ownership of an NFT based item such as an unique character in a game. These unique items can then be bought and sold without needing a central authority’s permission such as the owner of the game.
The purchase of an NFT can be compared to an autographed photograph, as although the photograph can be reproduced millions of times, the autographed version will either be unique or limited.
What are the most expensive NFT’s?
The recent popularity of NFTs is clearly demonstrated by the astronomical prices that they now command at auction:
1. Beeple, Everydays—The First 5000 Days ($69 million)
2. Beeple, Crossroads ($6.6 million)
3.Kevin Abosch, Forever Rose ($1 million)
4. Pak, Metarift ($904,413.47)
5. Steve Aoki and Antoni Tudisco, hairy ($888,888.88)
What is the future for NFTs?
The future of NFTs is hotly debated, not just by the cryptocurrency community but also international media outlets. Many argue that NFTs are a bubble that are just another way for people to make money out of the crypto hype. Despite this many argue that NFTs could be the future for both art and music due to their many benefits. Time will tell what the future really holds for NFTs.
Currently, most NFT’s are purchased using Ethereum, view the best Ethereum exchanges: