NFTs And How They Work

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%22Ethereum+Background%22+by+cryptocoin+is+licensed+under+CC+BY+2.0

“Ethereum Background” by cryptocoin is licensed under CC BY 2.0

By: Liam Ballew, Journalist

NFTs have been used more in the past few months and talked about more, but many people don’t know what an NFT is. NFT stands for “Non-Fungible Token.” It may sound similar to any other cryptocurrency, but it’s different. For example, Bitcoins can trade one for one(unless they go up or down in value), while individual NFTs can have different prices.

An actual NFT could be almost any virtual piece of “art.” Most NFTs are digital art, but some NFTs could be anything virtual. In fact, the creator of Twitter sold his first tweet for 2.9 million dollars. The most expensive NFTs to ever be sold was Mike “Beeple” Winkelmann’s “Everydays.”  These were a collection of the first 5,000 renders he did every day for the past 10 years.

The main way people buy or sell NFTs is using Ethereum. Ethereum is another cryptocurrency like Bitcoin or Dogecoin, but Ethereum is just the most popular blockchain crypto. Blockchains are a system in which a record of transactions made in cryptocurrency is maintained across several computers linked in a peer-to-peer network. Basically, they can help keep track of who owns an NFT.

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