What is an NFT
What is an NFT?
NFT stands for non-fungible token. It is something that only exists in the digital world. It is based on a technology called blockchain, which is also used with digital currency systems known as cryptocurrency.
What is blockchain?
Blockchain is an online list containing information that can be used and shared within a large network open to the public. The technology permits pieces of information to be checked and stored safely.
A digital collage titled “Everydays: The First 5,000 Days," by Beeple was sold for nearly $70 million.
An NFT can be attached to a piece of digital artwork or other things existing in digital form. The NFT can be used to provide proof that the pieces are authentic. This is what permits digital artwork to be bought and sold. While anyone can view the work, the buyer has official ownership rights over the objects.
What kinds of things are NFTs?
NFTs can exist in the form of images, video, music and text. They are usually bought with electronic money. The form of digital currency mainly used with NFTs is called ether. NFTs have been used to sell sports videos, pieces of land in worlds that only exist on computers and even the first-ever tweet by Twitter’s founder. A robot created a piece of art that was recently sold as an NFT.
Why do people like NFTs?
Artists like the idea of NFTs because the technology gives them a way to create and claim complete ownership over their digital works. This can make the artwork more rare, meaning the artists can sell their digital pieces for higher prices.
Who is Beeple?
One NFT piece was recently sold by an American digital artist known as Beeple. The artist, whose real name is Mike Winklemann, lives in South Carolina. His creation “Everydays – The First 5000 Days” -- a collection of 5,000 images -- sold in March for nearly $70 million.
Because of the blockchain technology, Beeple will continue to earn money each time his art changes hands. He gets 10 percent of the price after every sale.
Another American artist, Anne Spalter, sells some work as NFTs. At first, she did not think NFTs were a good idea, but then changed her mind. She says the technology has made people who might never go to an art gallery in person interested in art. However, she says she remains “mystified” by how high the prices went for some pieces.