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From Tesla's Technoking to the Twitter Boss, What's the buzz about NFTs?

Mar 16, 2021 17:04 IST | By Editorji News Desk

After Twitter Boss Jack Dorsey secured a $2.5 million bid for an NFT to his first ever tweet, the Technoking of Tesla Elon Musk is grooving to a song about the digital tokens. So what is the buzz all about, Editorji breaks it down for you. 

What is a NFT?

NFT or non-fungible tokens are unique digital tokens and as the name suggests can not be exchanged with anything else. The digital tokens are really certificates of ownership either to something physical or even virtual. These assets could be a piece of music, picture, meme, social media post, or even someone's identity,

How does it work?

An NFT is created by uploading a file to an NFT auction market. This file then gets ready to be traded in exchange for cryptocurrencies. Backed by same system as cryptocurrencies such as Bitcoin, NFT records are maintained in a digital ledger with blockchain technology. 

Who really uses it?

Auction houses such as Christies have already started setting records with the recent sale of digital artist Beeple for $69 million. NFTs are now being promoted as the digital answer to collectables as with the new system  anything valuable can be "tokenised" to create a digital certificate of ownership that can be bought and sold. 

Why all the hype?

Elon Musk, Jack Dorsey to old school record labels are all looking to cash in to the crypto-collectibles. But sceptics remain firm that the ‘thrill’ will die down  but blockchain backers are confident the trend is here to stay.