What does NFT stand for and what does that mean for the future? How do NFTs work?
NFTs, or non-fungible tokens, in short are a kind of unique and irreplicable token.
Take for example, cryptocurrency like the Bitcoin. When you trade Bitcoins for other Bitcoins, you get the same thing back that you traded. A Bitcoin.
However, NFTs function as a one-of-a-kind thing, you can trade it, like you do baseball or football cards, but what you get back in return is totally different from what you traded. It's not the same card.
How do NFTs work?
There are many different types of blockchain, not just the cryptocurrency platforms, like Bitcoin. NFTs are part of the Ethereum blockchain, the same on that Everledger uses! While you can put cryptocurrencies on the Ethereum blockchain, it also supports the NFT technology.
This is because the Ethereum platform can support the storage of additional information about the object and its origin, not just its value, like in the case of cryptocurrencies.
Because an NFT can be anything digital, but much of the conversation at the moment is surrounded around trading online art.
So what if someone just copies the digital art piece? Do I need to protect my NFTs?
Sure, anyone can copy a digital piece, its digital! But the ownership record of that piece, which identifies the purchaser is important if you want to sell or trade the NFT. It's like how there are many many copies of Van Gogh's Sunflowers, but only one original piece and one current owner.