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Whether the original file is a JPG, MP3, GIF or anything else, the NFT that identifies its ownership can be bought and sold just like any other type of art – and, like with physical art, the price is largely set by market demand. They were first launched on the Ethereum (opens in new tab) blockchain, but other blockchains including FLOW and Bitcoin Cash now also support them. The unique identity and ownership of an NFT is verifiable via the blockchain ledger. NFTs are part of the Ethereum blockchain (Image credit: Ethereum)
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They're like any other collector's item, like a painting or a vintage action figure, but instead of buying a physical item, you're instead paying for a file and proof that you own the original copy. To help, we've outlined the NFT trends for 2022.Įssentially, you can make NFTs from almost anything unique that can be stored digitally and holds value. Even tweets and memes have been made into NFTs. The NFTs you're most likely to have seen or read about tend be minted from trippy futuristic motion artworks, NFTs can be made from any kind of photography, art, music or video file. The file stores extra information that elevates it above pure currency and brings it into the realm of, well, anything, really. As a result, NFTs have become collectable digital assets that hold value, just like how physical art holds value.Īny kind of easily reproduced digital file can be stored as an NFT in order to identify the original copy. Unlike a unit of bitcoin, however, each NFT is completely unique, so it can't be exchanged like-for-like. Essential the same, or similar technology used for cryptocurrencies like bitcoin and ether is used to guarantee the uniqueness of each NFT and to prove who owns it. NFT stands for a non-fungible token, which means that hidden in those quirky artworks, there's a unique and non-interchangeable unit of data stored on a digital ledger using blockchain technology to establish proof of ownership. The best offer real world and digital perks (Image credit: Cereal Club) New NFT projects are releasing all the time, such as Cereal Club.