What are NFTs?
Good question. They’re like a blockchain wallet, but with no Bitcoins or any other currency in it. What it does have is artwork, usually some kind of image (jpeg, gif, png, etc.), or video, or music. Even tweets in some cases. What it also has is a digital record of ownership and provenance. So you always know who owns it.
What’s a Blockchain?
Yeah, this might be too complicated. Sort of a distributed register of … if you’ve heard of Bitcoins, it’s like that. Sort of. Check out these sites:
Imagine a $100 bill. The physical bill itself is like all others, worth exactly $100. Now imagine putting it in a bank and withdrawing it at a different branch, or paying for something online. The $100 is a fungible token, not unique or special in any way. Sure, the new bill has a serial number, but otherwise, it’s the same as the others. You are no more ahead than before. However, if Picasso comes along and puts his signature on it, it is now something special. Same thing here, basically. Except, instead of Picasso, it’s a big blockchain network, and the artist is … well, me.
What good are NFTs?
It’s like having art. Sort of.
Really, it’s like a smart contract which people can trace and claim. No matter how many times it’s sold or transferred, it’s always unique. You can always see who has owned it previously, and how much they paid for it.
Once you purchase an NFT, you have the digital rights to resell, re-distribute, or even license the digital asset. You don’t own the copyright of the image, however, and you don’t own a physical object, such as a painting, or anything, but the same could be said about any cryptocurrency. They seem to be doing all right, so far. (shrug)
In plain terms these NFTs are objects of art which you can brag about publicly, and can keep or sell as you see fit. Like virtual Pogs, or Beanie Babies, or baseball cards.