What are NFTs? How they work. The history.

What are NFTs?

An NFT is a digital asset that represents real-world objects like art, music, in-game items and videos

What does it stand for?

Non-fungible token.

non-fungible meaning that it cannot be duplicated. It is unique. This is the premise it is built on, a low supply and high demand and sparse availability.

How does it work?

NFTs uses blockchain technology like a cryptocurrency with a distributed public ledger that records transactions. 

To purchase an NFT you will have to own a crypto currency such as Ethereum or Bitcoin. You cannot purchase an NFT with cash.

Background

It started in 2014, then gained momentum in 2021. 

Some recent massive sells or purchases since are as follows:

• Twitter CEO Jack Dorsey sold the first-ever published tweet for $2.9 million via an NFT
• Painting by artist Mike Winkelmann sold for $69.3 million in 2021.
• A Coin for the Ferryman sold for $6million 

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