“NFTs are unique items verified and secured by a blockchain, the same technology used for cryptocurrencies. An NFT provides authenticity of origin, ownership, uniqueness (scarcity), and permanence for any particular item”(1).
Unique: NFTs are unique with a few exceptions. NFTs are 1 of 1. Enabling the owner of an NFT to own the original. Just as one can own an original painting, so too one can own an original digital work. And as with paintings, one can own a copy of an original painting so too one can own the copy of an original digital work. NFTs distinguish original versions from copies.
Verified and Secure: Blockchain technology ensures that NFTs are verified and secure. The process of creating or minting and NFT establishes its original owner. The blockchain secures that claim of ownership and tracks all subsequent owners. Marketplaces such as https://opensea.io facilitate the buying and selling of these NFTs or digital originals.
Characteristics: NFTs can be images, video, Gifs, audio and much more.
Utility: NFTs can have multiple functions, for example they can be used as membership cards see Fly Fish Club. They can be used to represent domain name ownership. I own kirktramble.eth. That ownership is represented by an NFT that I purchased. I hold that NFT in a cryptocurrency wallet. NFTs can also represent event tickets. Coachella is offering NFTs that grant the owner lifetime access to Cochella.
Have you purchased an NFT? What was good or bad about that experience?
Credits
(1)Fortnow, Matt; Terry, QuHarrison. The NFT Handbook (p. 10). Wiley. Kindle Edition.
