Twitter founder Jack Dorsey is auctioning off his first tweet , the Canadian musician Grimes digital works of art and the German YouTuber and all-round artist Fynn Kliemann music jingels. In a very short time, they can take in millions. Interested parties bid on digital certificates, so-called NFTs, at these auctions.
What began as a niche topic for crypto and gaming fans has been pushing into the mainstream for a few weeks. NFTs are becoming increasingly popular, especially in the art scene. t-online explains what’s behind the crypto hype.
What are NFT?
The abbreviation NFT stands for non-fungible token, in German: non-replaceable token. NFT are certificates for unique digital objects. They certify ownership of a specific file. Fungible in itself means that a thing can be replaced by something of equal value. For example, it doesn’t matter whether you have 20 euros as a single note, four 5 euro bills or 20 1 euro coins in your wallet.
On the other hand, objects that are unique due to certain properties are not fungible. Such objects can exist either physically or digitally. For physical objects, such as a painting or a car, it’s easy to set a value. This is measured by the uniqueness of the work of art and how much people are willing to pay for it.
This is more complicated with digital objects. After all, despite copyrights and usage rights, every picture, song and video can be copied and redistributed with a click of the mouse. Determining an exact value or owner of a file is difficult. This is where the idea of NFT comes in: The digital tokens contain information about a specific file that is both unique and verifiable. Blockchain technology is used to verify the authenticity of the files.
NFT and blockchain
The blockchain is basically a kind of database in which transactions of digital goods, such as crypto currencies, are stored in blocks and distributed on many computers around the world. For example, Bitcoin is on a blockchain. Its architecture makes the blockchain forgery-proof.