What is a NFT?
NFTs or Non-fungible tokens have risen in popularity drastically this year. Some selling for millions of dollars. The question remains are they valuable or is it all hype? Some say we are in a bubble, similar to the dot-com bubble. While others believe NFTs are here to stay and will change the world forever.
So What Exactly are NFTs?
An NFT is a digital asset such as music, art, video game items, and videos. They are purchased and sold online, typically with cryptocurrency. Typically also coded with the same underlying software and tech.
This can be traced back to 2012 when a paper was released that talked about the ‘Colored Coins’ concept for the blockchain. The goal was to describe a class of methods for representing real-world assets on the blockchain More on the history of NFTs can be found here
Some of the earliest NFTs were called “crypto punks”, which were originally free but now are selling for millions of dollars. Each NFT is typically one of a kind and has unique identifying codes.
How do NFTs Work?
NFTs exist on a blockchain. You are probably familiar with blockchain as the underlying tech that makes cryptocurrencies possible.
They are typically on the Ethereum blockchain, although other blockchains support them as well. These NFTs tend to have thriving communities the support and hold these items