Source | Range Finder
Confused by what NFT stands for? A non-fungible token is encrypted with an artist’s signature on a blockchain, or digital ledger, that is the backbone of cryptocurrencies like Bitcoin and Ethereum and allows buyers and sellers to verify authenticity and ownership. An NFT representing artist Beeple’s “Everydays: The First 5000 Days” collage art” (seen here on a smartphone screen) as a single JPEG digital file (with no physical copy involved) was sold for $69.3 million at Christie’s auction house on March 11, the highest price paid for an NFT and the third-most expensive work by a living artist.
Thanks to forgeries, art is regularly authenticated to verify its value—but what about when that art exists only in digital form? Enter the NFT, or non-fungible token. NFTs use blockchain technology to sell limited-edition digital files.
“Non-fungible” means it cannot be exchanged for something of similar value. It is, by definition, one of a kind.