“Non fungible tokens” (NFT), which could be translated as “non fungible tokens”, are cryptographic and virtual elements on the blockchain with unique identification codes and metadata (author, signature, date, type…) which distinguish them from each other. A NFT is unique, as a work of art can be. There is only one Mona Lisa or only one manuscript of the Flowers of Evil, and it is the blockchain that makes it possible to certify the uniqueness of an NFT, and thus to guarantee the authenticity to its future purchaser.
Unlike cryptocurrencies, such as Bitcoin, an NFT cannot be exchanged or used for exchanges. For the simple and good reason that the uniqueness of an NFT also gives it a unique value, unlike a Bitcoin that has the same value as another Bitcoin. An NFT is unique and cannot be replicated. On the other hand, it can be sold, as Jack Dorsey proved this week by selling his first tweet, which is already worth more than $2 million. The sale will take place on March 21.
Virtual games drive up prices
Another example of NFT is the NBA Top Shot. A virtual card exchange platform where online players exchange shares of basketball stars. Each action is unique. In one month, this platform has generated tens of millions of dollars with a Pokémon-like principle. Each player buys a package of virtual cards with unique content. For its part, the game Cryptokitties offers to buy virtual cats, all unique, and each litter of kittens is just as unique with values that explode according to the spawners.
Art is also concerned with digital illustrations but also music, and the prices are ignited since each piece is unique and becomes an object of collection. Recently, a person burned a piece of Banksy’s work, but its virtual reproduction, before destruction, is an NFT. In digital universes, NTF can even represent real estate, whether it is buildings or land.