Emerging Technologies
NFT
Definition
A Non-Fungible Token (NFT) is a unique digital identifier that is recorded on a blockchain and is used to certify ownership and authenticity. It cannot be copied, substituted, or subdivided.
Why It Matters
NFTs provide a way to create and prove ownership of unique digital items, such as digital art, collectibles, or virtual land. This creates the potential for new economies around digital goods.
Contextual Example
An artist can "mint" their digital artwork as an NFT on the Ethereum blockchain. A collector can then buy this NFT, and the blockchain provides a public, verifiable record that they are the owner of that specific piece of art.
Common Misunderstandings
- Owning an NFT does not necessarily mean you own the copyright to the underlying artwork or item.
- The value of NFTs can be extremely volatile and speculative.