Using the same principles behind cryptocurrencies such as bitcoin, NFTs allow people to claim ownership over specific digital files, be they songs, videos or static images. They represent a specific version of any digital file — whether it’s a song, a video game or a simple image. It’s a way of turning a digital file into something that can be bought and sold like a physical object. The knowledge in the owner’s mind that they own the original or “real” version of the digital file is what makes them valuable. ADEither way, just like the dizzying rally in bitcoin prices, NFTs show that cryptocurrencies and blockchain technology are more than just nerdy fads.

Source: Washington Post March 12, 2021 11:02 UTC