What is NFT? And why are people paying millions to buy them?

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Artist สล็อต happy Grimes recently sold a handful of NFTs for nearly $ 6 million. LeBron James's NFT that made history for the Lakers has earned more than $ 200,000. The Kings of Leon is releasing a new album in the form of NFT.Christie's House Auction, NFT Bid by Artist Beeple, has already had millions of attendees.And on Friday, Twitter CEO Jack Dorsey identified his first tweet as NFT.Safe to say, what started out as an Internet hobby among the subset of tech and finance interests has been taken to the mainstream.Which leads to a clear question Chief among them: What in the world is the NFT?


What does NFT stand for now?

It stands for "immutable token".It is immutable, meaning that you cannot exchange it for something of the same value. A $ 10 bill can be exchanged for two 5-dollar bills, one gold bar can be converted to another gold bar of the same size. Those are fungi, however, NFT is one of a kind.A token is a unit of currency on the blockchain. It's a way to buy and sell cryptocurrencies like Bitcoin.Remember those days when people lined up to buy the newest Nike Air Jordan sneakers at a physical store? It's the new digital equivalent," said Katie Haun, general partner at joint venture Andreesen Horowitz.It's everything that embodies culture and is also a bet on the future of e-commerce," Han said.


Not yet. What do you get with NFT?

This question has sparked some heated debate among NFT enthusiasts. The answer is not easy.How much do you buy online for rewards? Influence? Feeling? A digital collector's item?Perhaps you bought a type of barcode, almost a certificate of authenticity, that serves as proof that certain models are specific to you.The main thing that you are buying is the code that is pictured," says Donna Redel, who teaches the crypto assets course at Fordham Law School. "You are buying another form of art.But keep in mind that when you buy NFT, you often don't get any copyright or trademark for that product. And just because you own an NFT doesn't mean there won't be that in any other internet version there will be. It's the internet.

However, NFT enthusiasts say that owning the code in the blockchain has shown to be incredibly valuable.You're not buying pictures," said Jake Brukham, founder of cryptocurrency investment firm CoinFund. "You are buying the rights to the property in the picture.Why don't people instead right-click on an image and save it to their desktop?real.But like any other collectible, be it baseball cards or rare books or artwork, having an original is something special.Get CryptoPunks, a pixelated avatar that fetches millions of data. Of course, you can download one of the alien avatars. But collectors wouldn't think they were genuine.The real alien CrytoPunk cost an average of $ 900,000.For clarity, there is no difference between the original image and the copied version.

And just to be more confusing, not all NFTs are original. Many are equivalent to digital reprints. But in this case, the reprints will have a unique barcode, or "token," on the blockchain, a decentralized type of record keeping. In other words, instead of a single institution like a bank with a transactional ledger, blockchain uses a large computer network where everyone is responsible for each other in a shared public record.That makes it difficult to remove NFT from the web entirely. It also means that there is a way to track NFT's origins and transaction history.