NFT.
In plain English
An NFT, or non-fungible token, is a unique entry on a blockchain that points to a specific item, often digital art, a collectible, or an in-game object, and records who owns it. Non-fungible means each one is one of a kind, unlike a dollar or a Bitcoin, which are interchangeable. Owning an NFT usually means owning the blockchain record, not the copyright or the underlying file, which anyone can still copy. Prices are driven by demand and hype, many NFTs have fallen to a small fraction of their peak, and some markets are thin, so selling at any price can be hard.
01Why it matters
NFTs were sold as sure-thing investments, so understanding that you are usually buying a record of ownership, not the art or its rights, guards against overpaying for hype.
02The math, step by step
You pay 400 dollars for an NFT of an image. You own the blockchain token that says you hold it, but the picture can still be copied freely, and if demand fades the token may resell for 20 dollars or find no buyer at all.
03What this is NOT
An NFT is NOT the same as owning the copyright or the file. You own a record on the blockchain; the creator usually keeps the rights, and the image can be copied by anyone.
04Receipts
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