What is an NFT? - Explained in 11 minutes

Cointelegraph’s director of video production, Jackson DuMont, explains what NFTs are, how they work, and why they’ve made their way to the forefront of Web3 technologies.

Timestamp:

00:00 - Intro

01:17 - What are NFTs?

04:14 - How to buy NFTs

05:17 - PFP Projects

05:32 - Photography NFTs

05:38 - Collectible NFTs

05:44 - Generative Art NFTs

05:57 - Music NFTs

06:15 - Gamified NFTs

07:25 - The future of NFTs: Is it all a scam?

07:44 - Phishing Scams

09:09 - Rug Pulls

10:37 - Conclusion

11:09 - Outro

What Is a Non-Fungible Token (NFT)?

Non-fungible tokens (NFTs) are cryptographic assets on a blockchain with unique identification codes and metadata that distinguish them from each other.

Unlike cryptocurrencies, they cannot be traded or exchanged at equivalency. This differs from fungible tokens like cryptocurrencies, which are identical to each other and, therefore, can serve as a medium for commercial transactions.

KEY TAKEAWAYS

• NFTs (non-fungible tokens) are unique cryptographic tokens that exist on a blockchain and cannot be replicated.
• NFTs can represent real-world items like artwork and real estate.
• "Tokenizing" these real-world tangible assets makes buying, selling, and trading them more efficient while reducing the probability of fraud.
• NFTs can also function to represent individuals' identities, property rights, and more.
• Collectors have sought NFTs as their value initially soared, but has since moderated.

Read More at Investopedia

Disclaimer: This video and article are provided for informational purposes only and not offered or intended to be used as legal, tax, investment, financial, or any other advice.