Budapest Post

Cum Deo pro Patria et Libertate
Budapest, Europe and world news

What are NFTs and why are they suddenly so popular?

What are NFTs and why are they suddenly so popular?

Non-fungible tokens (NFTs) are the latest cryptocurrency phenomenon to go mainstream. What are they and why are they becoming so popular with artists?

Blockchain, a relatively new technology, is already revolutionising many aspects of our lives such as healthcare and the economy. But there is always a heightened level of excitement when new ground is broken.

Enter the NFT. Underpinned by blockchain, this form of cryptocurrency is using technology to catalogue, buy and sell digital collectibles, including art, music, video games and more.

The aim is to recalibrate and redefine the value of our culture. And this is just beginning to happen with something called non-fungible tokens, or NFTs.

What is an NFT?


NFTs are a form of cryptocurrency like Bitcoin, only instead of holding money, they contain assets like art and music.

A fungible token is an asset that can be exchanged on a one-for-one basis. Much like fiat currencies such as dollars or cryptos like Bitcoin, each one has the exact same value and can be traded freely.

A non-fungible object, by contrast, has its own distinct value, like an old house or a classic car. Cross this notion with blockchain, the technology which underpins cryptocurrencies, and you get NFTs.

These are effectively digital certificates of authenticity that can be attached to digital art or, well, pretty much anything else that comes in digital form; audio files, video clips, animated stickers, or even this article.

NFTs confirm an item's ownership by recording the details in a digital ledger known as a blockchain, which is public and stored on computers across the internet, making it effectively impossible to lose or destroy.

At the moment, these tokens are white-hot in the collecting world, where they are being used to solve a problem central to digital collectibles: how to reclaim the value and ownership of something that can be easily and endlessly duplicated.

Mike Winkelmann, aka Beeple, shows off his digital art process in his home studio.


But can’t you just copy something off the internet?


You can take a photo of the Mona Lisa in the Louvre or buy a print from the museum gift shop but that doesn't mean you own the original artwork. The same can be said of modern art forms like digital art which can be downloaded from the internet and printed.

One purpose of NFTs is that they can be used to trace an object's digital provenance, allowing a select few to prove ownership. Broadly speaking, it's a way to create scarcity - albeit artificial - so that you can sell something for higher prices thanks to its scarcity.

"All the time, money, and effort you spend in your digital life, you can create value for that," says Chicago fund manager Andrew Steinwold, who started an NFT fund in 2019. "You have property rights in the physical world. Why don’t we have property rights in the digital world?"

Some NFT issuers give full copyrights to the buyer, though others do not.

Who is using NFTs?


Beeple, a conceptual 3D artist whose real name is Mike Winkelman, became the third wealthiest living artist after an NFT containing his work sold for $69.3 million (€58.9 million) at auction in March, smashing all records for previous NFT sales.

Last month, Kings of Leon became the first band to issue NFTs. They are selling three different tokens: one with their new album, another with live show perks like front row tickets for life, while a third contains exclusive audiovisual art.

Stark Trek actor William Shatner sold 90,000 virtual trading cards as NFTs last year for $1 (€0.85) each. Electronic musician Grimes sold $6 million (€5.1 million) worth of her digital art last month, including a video clip featuring winged cherubs floating in pastel dreamscapes that went for $389,000 (€331,000).

Clips of NBA star LeBron James dunking are selling for as much as $225,000 (€213,000). Actress Lindsey Lohan sold an image of her face. You can also buy virtual land in video games, or meme characters like Nyan Cat.

According to digital artist Anne Spalter, who was initially a sceptic but has now sold her own art as tokens, NFTs "have opened up art to a whole bunch of people who never would have gone to a gallery".

AI Disclaimer: An advanced artificial intelligence (AI) system generated the content of this page on its own. This innovative technology conducts extensive research from a variety of reliable sources, performs rigorous fact-checking and verification, cleans up and balances biased or manipulated content, and presents a minimal factual summary that is just enough yet essential for you to function as an informed and educated citizen. Please keep in mind, however, that this system is an evolving technology, and as a result, the article may contain accidental inaccuracies or errors. We urge you to help us improve our site by reporting any inaccuracies you find using the "Contact Us" link at the bottom of this page. Your helpful feedback helps us improve our system and deliver more precise content. When you find an article of interest here, please look for the full and extensive coverage of this topic in traditional news sources, as they are written by professional journalists that we try to support, not replace. We appreciate your understanding and assistance.
Newsletter

Related Articles

0:00
0:00
Close
Altman Says GPT-5 Already Outpaces Him, Warns AI Could Automate 40% of Work
Russian Research Vessel 'Yantar' Tracked Mapping Europe’s Subsea Cables, Raising Security Alarms
Global Cruise Industry Posts Dramatic Comeback with 34.6 Million Passengers in 2024
U.S. Demands Brussels Scrutinize Digital Rules to Prevent Bias Against American Tech
Private Equity’s Fundraising Surge Triggers Concern of European Market Shake-Out
Tokyo’s Jimbōchō Named World’s Coolest Neighbourhood for 2025
European Officials Fear Trump May Shift Blame for Ukraine War onto EU
The Personality Rights Challenge in India’s AI Era
Italy Considers Freezing Retirement Age at 67 to Avert Scheduled Hike
Italian City to Impose Tax on Visiting Dogs Starting in 2026
Study Finds No Safe Level of Alcohol for Dementia Risk
Trump Says Ukraine Can Fully Restore Borders with NATO Backing
Europe Signals Stronger Support for Taiwan at Major Taipei Defence Show
Germany Weighs Excluding France from Key European Fighter Jet Programme
Cyberattack Disrupts Check-in and Boarding Systems at Major European Airports
Björn Borg Breaks Silence: Memoir Reveals Addiction, Shame and Cancer Battle
When Extremism Hijacks Idealism: How the Baader-Meinhof Gang Emerged and Fell
JWST Data Brings TRAPPIST-1e Closer to Earth-Like Habitability
Trump Orders $100,000 Fee on H-1B Visas and Launches ‘Gold Card’ Immigration Pathway
France’s Looming Budget Crisis and Political Fracture Raise Fears of Becoming Europe’s “Sick Man”
Three Russian MiG-31 Jets Breach Estonian Airspace in ‘Unprecedentedly Brazen’ NATO Incident
European manufacturers against ban on polluting cars: "The industry may collapse"
Turkish car manufacturer Togg Enters German Market with 5-Star Electric Sedan and SUV to Challenge European EV Brands
Christian Brueckner Released from German Prison after Serving Unrelated Sentence
World’s Longest Direct Flight China Eastern to Launch 29-Hour Shanghai–Buenos Aires Direct Flight via Auckland in December
New OpenAI Study Finds Majority of ChatGPT Use Is Personal, Not Professional
The conservative right spreads westward: a huge achievement for 'Alternative for Germany' in local elections
Pope Leo Warns of Societal Crisis Over Mega-CEO Pay, Citing Tesla’s Proposed Trillion-Dollar Package
Poland Green-Lights NATO Deployment in Response to Major Russian Drone Incursion
U.S. and China Agree on Framework to Shift TikTok to American Ownership
Le Pen Tightens the Pressure on Macron as France Edges Toward Political Breakdown
Czech Republic signs €1.34 billion contract for Leopard 2A8 main battle tanks with delivery from 2028
Penske Media Sues Google Over “AI Overviews,” Claiming It Uses Journalism Without Consent and Destroys Traffic
Indian Student Engineers Propose “Project REBIRTH” to Protect Aircraft from Crashes Using AI, Airbags and Smart Materials
One in Three Europeans Now Uses TikTok, According to the Chinese Tech Giant
Could AI Nursing Robots Help Healthcare Staffing Shortages?
NATO Deploys ‘Eastern Sentry’ After Russian Drones Violate Polish Airspace
The New Life of Novak Djokovic
German police raid AfD lawmaker’s offices in inquiry over Chinese payments
Volkswagen launches aggressive strategy to fend off Chinese challenge in Europe’s EV market
France Erupts in Mass ‘Block Everything’ Protests on New PM’s First Day
Poland Shoots Down Russian Drones in Airspace Violation During Ukraine Attack
Apple Introduces Ultra-Thin iPhone Air, Enhanced 17 Series and New Health-Focused Wearables
Macron Appoints Sébastien Lecornu as Prime Minister Amid Budget Crisis and Political Turmoil
Vatican hosts first Catholic LGBTQ pilgrimage
Apple Unveils iPhone 17 Series, iPhone Air, Apple Watch 11 and More at 'Awe Dropping' Event
France joins Eurozone’s ‘periphery’ as turmoil deepens, say investors
France Faces New Political Crisis, again, as Prime Minister Bayrou Pushed Out
Nayib Bukele Points Out Belgian Hypocrisy as Brussels Considers Sending Army into the Streets
France, at an Impasse, Heads Toward Another Government Collapse
×