What exactly are NFTs?
Tokens that are not fungible are NFTs.
Non-fungible means that one token cannot be substituted for another because each token is unique.
US dollars are fungible because, like Bitcoin, if you exchange one for another, you get exactly the same thing.
On the other hand, if you traded one NFT for another, you would end up with a completely different one.
NFTs are created on Ethereum-like blockchains and can be purchased with cryptocurrency.
Anything can be a digital version of a NFT, including music, land, and art.
Using NFTs to sell digital art is generating a lot of interest right now; you may have heard of art NFTs selling for millions of dollars.
On the other hand, NFTs are far more than just art. Because NFTs digitally represent ownership rights, it could be inevitable that all of our homes will be sold as NFTs.
The ability to trace the data and the speed with which transactions can be conducted are just two of the many advantages that come with having ownership data stored on the blockchain.
When all they are are images of monkeys, why have some NFTs sold for millions of dollars?
The value of an NFT lies in part in the scarcity of a specific JPEG; however, the value lies, more importantly, in the access to a community that the NFT enables. This is why some NFTs have already been adopted rather than ownership.
In a world that is becoming increasingly digital, people feel compelled to be part of a larger group that shares their ideals, objectives, and aesthetics.
By providing an exclusive membership club-like atmosphere for their owners, some of the highest-rated NFT collections, such as Bored Ape Yacht Club, World of Women, and Proof Collective, demonstrate precisely that but, more importantly, the value lies in the access to a community which the NFT enables.