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The Capital Weekender with Meg McHugh 10pm - 1am
20 May 2022, 14:56 | Updated: 23 May 2022, 09:10
‘What is an NFT?’ I hear you cry. Well, let us try and explain it to you.
NFTs, which stands for non-fungible token, is built using the same kind of technology as bitcoin and over the past couple of years we’ve seen celebs such as Liam Payne, Doja Cat and Lewis Capaldi, talking about them, buying them and even making their own.
However, we’re all still struggling to fully understand what an NFT actually is.
Here, we’ve tried our best to explain it in the most simple of terms…
Doja Cat reveals her first-ever NFT
An NFT is a non-fungible token, which essentially means it can’t be replaced with something else.
If you traded it for another NFT, it would be a completely different NFT whereas swapping bitcoin with another bitcoin still leaves you with the exact same thing.
NFTs are anything digital, but most of the hype is around using it for digital art and digital merchandise. It also includes music, tweets and GIFs.
It gives artists and creators a way to sell their work in a modern format, meanwhile collectors are hoping that the value of their purchases will go up one day so they can sell it for a profit.
It’s not just for art collectors and sellers though, people purchase the digital art just for having a one-of-a-kind piece to hold on to which they can show off to their mates.
An NFT allows the buyer to own the original item. It contains a built-in authentication, which serves as proof of ownership.
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