You’ve probably been hearing a lot of the term “NFT” lately. And if you’re like a lot of people, you’re probably pretty confused about what you’re hearing. From what you can gather, it’s something confusing having to do with art, cryptocurrency, auctions, and celebrities… huh??
So in this article, we’re going to break down NFTs for you.
NFTs, which stands for non-fungible tokens, are unique digital assets. They exist on the blockchain, which is basically a recording system that is very difficult to hack. That’s why it’s used as the basis for cryptocurrencies like bitcoin.
At any rate, artists basically have started using NFTs like digital certificates of authenticity, so that people can be sure that they have an authentic and original copy of something when they buy it online.
When an artist like Grimes, Shawn Mendes, or even the David after the dentist meme kid “auction off an NFT,” it means that they’re basically selling a verified version of something they’ve made.
Now, why is it so controversial? Well, because NFT trading requires a lot of computer processing power to do, they use up a lot of energy, making them pretty bad for the environment. The estimate is that on average, a single NFT is responsible for about 90 kilograms of CO2 — the equivalent of an hour of international commercial jet flight.
And that’s the 101 on NFTs.
