A non-fungible token (NFT) is a unit of data on a digital ledger called a blockchain, where each NFT can represent a unique digital item, and thus they are not interchangeable. NFTs can represent digital files such as art, audio, videos, items in video games and other forms of creative work.
There is a lot of hype and a lot of confusion around NFT’s. My gut is that the hype will peak and then dip and return in a way that appears more applicable with many more opportunities.
Every creative piece should be on the blockchain. As we become a more global world, with global consumer transactions, the blockchain authenticates the artist. If you want to purchase an authentic, original piece, it is certain if it is on the blockchain.
Here is another way to look at it. During WW2, over 600,000 pieces of art were stolen from the Jews by the Nazis. One hundred thousand pieces have still not been recovered. That is not including the 50,000 books and manuscripts. All taken from individuals and museums. Billions of dollars.
There have been countless lawsuits attempted to get art pieces back to the actual owners. If each of these pieces had been on the blockchain, there would be no question who owned the original piece. There might have been countless replications used in multiple ways, but if they were NFT’s, there would be zero question who owned them, and the providence on each of these pieces would be tracked and known.
When you think of NFT’s that way, it actually simplifies how NFT’s work.