What are NFTs?

NFT - Explain Like I'm 5

Non Fungible Tokens (NFT) is the ability to create 100% unique, digital 'finger prints' that can be bought, sold, or transferred.

Basically, NFT = "hey I own this (item) and I can prove it with the unique token I have in my crypto wallet"

NFT FAQ

Q: What do I actually own when I buy an NFT?

A: You get a 100% unique Ethereum token in your wallet that represents whatever art you chose to purchase (and can be verified). This token can be transferred, sold, etc...

Q: Can I buy NFTs with dollars or real world money?

A: No, well, kind of. NFTs are on the Ethereum blockchain, and are bought and sold with the Ethereum crypto currency. (ETH). However, you can buy ETH with real world money on Coinbase and purchase your NFT with that ETH. The price of ETH fluctuates, keep this in mind.

Q: But can't the .jpeg file I buy be copied / pasted etc...?

A: Well, the mona lisa is "copied and pasted" every day, and hung in homes, offices, etc... But copy / paste doesn't mean they own the Mona Lisa. Value is in ownership. Which NFTs can prove very easily.

Q: Can't people crop / alter existing NFT art and re-sell it?

A: Sure, just like many people have sold fake million-dollar art work in the physical world. The obvious answer is to buy from verified artists on NFT marketplaces. Do your research into an artist or project before purchasing an NFT, just like you would with a car, house, physical art, etc..

Q: How can the REAL artist prove that a copy is a FAKE?

A: this is what makes NFTs revolutionary. Every time an artist mints an NFT, it is permanently timestamped on the ethereum blockchain, and cannot be reversed or deleted. So pointing your finger to your "time stamp" is all you need.

Q: Can only GIFs and images be sold as NFTs? What about physical items?

A: Surprisingly, NFTs have no bounds! Check out these phyiscal Uniswap socks that released as an NFT. At the time of the screenshot, they're going for $115,000!

Where Do I Buy NFTs?

Just like collectible baseball cards, NFTs can be purchased from an artist or organization's website when they are created (i.e Crypto Punks) , and later can be transferred and sold on NFT marketplaces such as OpenSea or Looks Rare.