An explanation is better left to the author of a recent article in The Conversation, “How nonfungible tokens work and where they get their value – a cryptocurrency expert explains NFT.”
Author Dragan Boscovic, Research Professor of Computing, Informatics and Decision Systems Engineering, Arizona State University explains:
- “Nonfungible tokens prove ownership of a digital item – image, sound file or text – in the same way that people own crypto coins. Unlike crypto coins, which are identical and worth the same, NFTs are unique.
- An NFT is worth what someone is willing to pay for it, which can be a lot if the NFT is made by a famous artist and the buyer is a wealthy collector.”
A recent sale of a collage composed of 5,000 digital pieces by an artist called Beeple was auctioned by Christie’s on March 11 for $69 million. Twitter’s founder Jack Dorsey transferred the first tweet into an NFT and offered it for sale. If you’re curious to see what—if any—impact NFTs will have on the life of an ordinary person, read on: https://tinyurl.com/2s22rvxs