NFTs Explained

NFTs Explained

NFTs Explained.

An NFT created by digital artist Beeple recently took in more than $69 million at the centuries-old auction house, Christie's.

The amount shatters records for the sale of digital art and is an indicator of the direction in which all fine art could be headed.

But what is an NFT?

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The letters stand for non-fungible token, which basically means that the "token" cannot be replaced by something else because of its uniqueness.

NFTs can take any digital form, but what is making headlines now are digital art NFTs.

Because they are designed to be unique and not able to be copied, owning an NFT is like owning an original Picasso.

Prints of Picasso paintings are inexpensive and easy to get, but only one person can own the original, which can sell for tens of millions of dollars.

An NFT creator will always be credited and receive payment for the buying and selling of their digital work... ... because most NFTs are an extension of the Ethereum blockchain, and as such all transactions are public and traceable