What it is
Non-fungible tokens (NFTs) are unique digital assets authenticated on a blockchain. Each one represents ownership of, or proof of authenticity for, a digital or physical item. They are best known for digital art, music and video, but they can record ownership of almost anything.
Image source: The Verge
How it works
An NFT is a cryptographic token on a blockchain that certifies who owns a unique asset. Unlike cryptocurrencies such as Bitcoin or Ethereum, each NFT is distinct, so one cannot be swapped for another on a one-to-one basis. People buy, hold and trade NFTs through smartphones, computers and other internet-connected devices.
This gives NFTs some useful properties:
- Permanent ownership records: the blockchain keeps an unchangeable record, which reduces piracy and unauthorised use.
- No intermediaries: buyers and sellers deal directly.
- Smart contracts: royalty payments to creators can be automated.
- Portability: NFTs can be traded across different platforms.
Where it is used in industry
- Supply chain transparency: tracking where goods came from.
- Intellectual property: a fixed record of who owns a creation.
- Identity verification: a secure way to verify identity and reduce fraud.
- Event tickets: secure, traceable tickets that reduce fraud.
- Real estate: representing property ownership digitally.
- Digital art and collectibles: artists selling digital work, and items such as virtual trading cards.
- Music: musicians distributing royalties transparently.
- Gaming and virtual fashion: owning and trading in-game items and virtual clothing.
How we use it
NFTs are part of what we teach. Our metaverse masterclasses explain how NFTs relate to blockchain and the metaverse, why brands launch them and how to launch your own, and participants earn an NFT graduation badge. Talk to our team if you want to explore NFTs for your brand.
Frequently asked questions
What is an NFT?
An NFT, or non-fungible token, is a unique digital record held on a blockchain that proves who owns a digital or physical item and that it is authentic. NFTs are best known for digital art, music and video, but they can record ownership of almost anything, from event tickets to property.
How is an NFT different from a cryptocurrency like Bitcoin?
Unlike cryptocurrencies such as Bitcoin or Ethereum, each NFT is distinct, so one NFT cannot be swapped for another on a one-to-one basis. An NFT is a cryptographic token on a blockchain that certifies who owns a unique asset. People buy, hold and trade NFTs through smartphones, computers and other internet-connected devices.
What are the benefits of NFTs for creators and businesses?
NFTs offer permanent ownership records, because the blockchain keeps an unchangeable record that reduces piracy and unauthorised use. Buyers and sellers deal directly without intermediaries, smart contracts can automate royalty payments to creators, and NFTs can be traded across different platforms. These properties make NFTs useful well beyond digital art.
Which industries use NFTs?
NFTs are used for supply chain transparency, recording intellectual property ownership, identity verification, secure and traceable event tickets, and representing real estate ownership digitally. They are also used for digital art and collectibles such as virtual trading cards, transparent music royalties, and owning and trading in-game items and virtual fashion.
Does Metaverse911 teach NFTs in its metaverse masterclasses?
Metaverse911 teaches NFTs as part of its metaverse masterclasses. The sessions explain how NFTs relate to blockchain and the metaverse, why brands launch them and how to launch your own, and participants earn an NFT graduation badge. Brands that want to explore NFTs for their own business can talk to the Metaverse911 team.
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