NFT explained in TWO words
This article explains what is NFT and what value does it really have.
Ok, here it is - an NFT is UNCOPIABLE FILE.
For the first time in human history, we've managed to create a digital thing that has true real-world properties. NFT is simply a file that can be stored, sent and used (executed) but at the same time it can't be copied - just like any real-world item. The file can change its owner but it can't be duplicated. Blockchains won't permit that. In other words an NFT can exist only inside a blockchain. And an NFT keeps its value only inside a blockchain-based application.
So, where does it leave us and why is all this hype happening? It's quite simple really. Suddenly everybody realized that they can have their own production of digital items and they can sell those for a good price. The only problem here is that the majority of those items are useless in our real world.
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Come on, why on Earth would anyone want to pay millions for an avatar picture when anybody can still copy it and use it for free on any website, not paying a dime to the author/owner?
The answer is hidden inside the question. No, not on Earth. But in a place with different laws it might very well be reasonable - just like owning things we have here. So what is that place where NFT matters?
It can be any place where your NFT is meant to be used while being useless anywhere else. Like a computer game for example. Imagine owning a car in the well-known GTA game. It makes sense owning it only while playing the game. It means that you can't use a GTA car to get to your real world work. In our reality it's a useless item since it can't uncover its properties in our real world. But in a virtual reality it definitely has its value.
Today we often talk about the Metaverse - a very big computer game with real economy. In that place blockchain-based applications will control property rights and the very usage of NFTs.
So if your favourite game allows it - go and buy your NFT without second thought. And you can be sure that noone else has it while you own it, so enjoy the situation )