But What Are NFTs Actually

NFTs, or Non-Fungible Tokens, are similar to cryptocurrencies like Bitcoin in that they exist on a tamper-proof digital record called a blockchain. Unlike Bitcoin, which is interchangeable, NFTs are unique and not interchangeable, similar to a signed item or a special arcade token. They are created using 'smart contracts' on programmable blockchains like Ethereum. While often associated with digital art, buying an NFT does not mean you own the artwork itself or its copyright; instead, you own a unique digital token that points to the artwork's location on the internet. NFTs can be used for things like unique event tickets, but their main use currently is as digital collectibles, similar to physical trading cards, where value comes from the artist's endorsement or perceived rarity. Legally, creating NFTs of other people's work can lead to serious issues like copyright or trademark infringement.