WTF IS AN NFT?

No flipping tuna?

Errr, no. NFT stands for ‘non-fungible token’ – which, despite what it sounds like, has nothing to do with mushrooms. An NFT’S non-fungibility means it’s unique, like a digital equivalent of that one-off album that the Wu-tang Clan recorded and then sold for $2million. That money can be swapped with two bags full of

$1m each and it’ll still be worth the same, but the album is one of a kind and cannot be replaced.

If it’s digital, can’t someone just make a copy of it?

Yes, but that’s exactly the point of the NFT. The copy-and-paste nature of digital stuff is what affects its value, but if you tokenise something with an NFT then you have a certificate of ownership and originality that gives it undisputable value. NFTS are part of the blockchain, similar to cryptocurrencies like Bitcoin or Ethereum, which means every single one can be accounted for with a ledger that includes the details of who owns what. That ledger is maintained by computers all over the world, meaning it can’t be forged. There’s nothing to stop someone copying the original, but the NFT and ledger will prove who bought it.

So I can tokenise my selfies?

You can tokenise anything digital, but that doesn’t mean somebody’s suddenly going to want to buy it off you. A lot of the NFTS sold so far have been digital artworks, but a gif of the meme icon Nyan Cat fetched nearly $550,000 in February, and the chap who filmed himself skateboarding down the street to Fleetwood Mac has put the video up for sale with a starting price of $500,000. Kings of Leon’s latest album When You See Yourself has also been released as an NFT, with six versions of it granting the owners lifetime access to the band’s live shows… though having to sit through a load of Kings of Leon gigs is not our idea of added value.