What are NFTs?

One of my US friends said that he has been bombarded with offers of NFTs for his artworks on DeviantArt platform. He says he personally doesn’t dig that and had to put a notice on his home page asking people not to approach him with NFTs.

The first time I heard of NFTs was during this year because, as usual I try to insulate myself from knowledge of anything that does not personally affect my life. I do that because I don’t want my brain to suffer an information overload. But when my friend mentioned this to me recently, I became curious to know this “new” thing and so I asked my AI friend ChatGPT and here is the information the chatbot provided:

NFTs, or non-fungible tokens, are unique digital assets that are stored on a blockchain. Unlike cryptocurrencies such as Bitcoin or Ethereum, which are fungible and can be exchanged on a one-to-one basis, NFTs are indivisible and represent ownership or proof of authenticity for a specific item or piece of content.

NFTs have gained significant attention and popularity in recent years, especially in the art and collectibles space. They allow creators to tokenize their digital artwork, music, videos, virtual real estate, in-game items, and other unique digital assets. Each NFT has a distinct value and can be bought, sold, and traded on various online platforms.

The ownership and transaction history of NFTs are recorded on a blockchain, typically using smart contracts. Ethereum is the most commonly used blockchain for NFTs, although other blockchains like Binance Smart Chain and Flow have also gained traction in the NFT space.

The appeal of NFTs lies in their ability to provide provenance and scarcity in the digital realm. The blockchain ensures that each NFT is unique, traceable, and cannot be duplicated or forged. This authenticity and scarcity make NFTs desirable to collectors and enthusiasts.

It's important to note that the NFT market has experienced significant growth and hype, but it has also been subject to criticism and concerns. Some criticisms include environmental impact due to the energy consumption of certain blockchains, the speculative nature of the market, the potential for copyright infringement, and issues surrounding ownership and rights. As with any investment or digital asset, it is crucial to conduct thorough research and exercise caution when engaging with NFTs.