For the past two years, the tech world has been abuzz about NFTs, or non-fungible tokens. However, some people who aren’t as digitally savvy still aren’t sure what NFTs are and why there’s hype around them.
A NFT is a “digital representation of ownership,” Brandon Buchanan, founder of Meta4 Capital, told Finurah. Meta4 Capital is a Miami-based venture capital fund that invests in NFTs. Buchanan said NFTs are proof that you bought something that lives on the Internet.
“In the way that a receipt proves that you purchased something from your local convenience store, or a stock certificate represents ownership of a public company, a NFT represents your ownership of a unique digital item,” he said.
A digital item could be anything from videos to audio recordings. It could also mean digital art, Buchanan said.
The tech world is excited about NFTs because people around the world are evolving into a more digital society, Buchanan said.
Artists and other entrepreneurs can sell NFTs and “re-architect the internet in ways that benefit the individual users as opposed to the big tech companies,” Buchanan said. Besides the money, one other reason tech enthusiasts are high on NFTs is because they offer someone a true one-of-a-kind ownership of something unlike the way forgeries and knock-offs of shoes and purses are created today.
“I can not falsify which NFTs are being held in my cryptocurrency wallet,” Buchanan said. “With NFTs, it is abundantly clear what is real, what is fake, what is a copy. It’s codified and that verifiable scarcity is what makes them so critical as the next wave of how we transact.”
The number of NFTs available for purchase and the platforms selling them have exploded since 2020. Part of that eruption stems from athletes, celebrities and prominent artists diving into the trend.
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