What is an NFT?

An NFT (non-fungible token) is a unique digital item stored on a blockchain. NFTs can represent almost anything, and serve as a digital record of ownership.

Before we dive into NFTs, it’s important to understand the “non-fungible” part of “non-fungible token.” When an item is fungible, it means it’s interchangeable with another of the same item. A classic example is a $1 dollar bill: you could swap dollars with someone and you’d both still have $1.
Non-fungible, on the other hand, means the item is totally unique, and therefore has its own unique value. For example, two cars of the same make and model might have different values based on how many miles are on the odometer, their accident records, or if it was previously owned by a celebrity.

What are NFTs used for?

An NFT can represent anything, but let’s explore some of the ways NFTs are being used today, and potential implementations for the future.

Art NFTs

An art NFT is a type of NFT that represents a piece of digital art, such as a drawing, painting, or piece of digital artwork. Each art NFT is unique and traceable to the original creator of the NFT, and that connection to the creator may be valuable as well. Art NFTs are a new form of digital art that can be collected and sold, similar to physical artwork. Art NFTs can also have additional utility (for example, owning the NFT may also give you commercial rights to use the underlying artwork).

Artists are creating incredible and novel pieces with NFTs. Damien Hirst used NFTs in his collection “The Currency”, in which he created digital versions of 10,000 unique physical paintings. Collectors had one year to decide if they wanted the digital or the physical version of the painting— whichever version they did not choose would be destroyed.

This record serves as a permanent statement of authenticity that can be viewed or accessed by anyone. Today, when you buy a piece of art or a collector's item, it typically comes with a paper certificate of authenticity, which you must then keep track of forever. It is easily forgotten, lost or destroyed, creating a very fragile system for authenticity. Blockchain’s offer a simple and more secure solution to this long standing issue of proving authenticity.

Profile picture NFTs (PFPs)

A profile picture, or PFP, NFT is any NFT that's primary purpose is use as a social media profile picture, or avatar. These NFTs are digital items that are authenticated on a blockchain network, making them verifiably unique. Some PFP NFTs also grant access to designated online communities.
Profile picture NFTs come in various forms, ranging from static images to animated or interactive designs. They may be based on characters, take the form of animals, look like humans, or be abstract.
These are probably the projects you’ve heard the most about: Bored Ape Yacht Club (BAYC), Doodles, World of Women (WoW), and more. For many people on the internet, these PFPs actually become their online identity. Not only do they identify with the group, they strongly identify with their avatar. PFP projects are also centered around holder benefits (like BAYC’s famous yacht party) and community (like WoW, which donates a portion of their creator earnings to women-centric charities).

Art NFTs

An art NFT is a type of NFT that represents a piece of digital art, such as a drawing, painting, or piece of digital artwork. Each art NFT is unique and traceable to the original creator of the NFT, and that connection to the creator may be valuable as well. Art NFTs are a new form of digital art that can be collected and sold, similar to physical artwork. Art NFTs can also have additional utility (for example, owning the NFT may also give you commercial rights to use the underlying artwork).

Artists are creating incredible and novel pieces with NFTs. Damien Hirst used NFTs in his collection “The Currency”, in which he created digital versions of 10,000 unique physical paintings. Collectors had one year to decide if they wanted the digital or the physical version of the painting— whichever version they did not choose would be destroyed.

This record serves as a permanent statement of authenticity that can be viewed or accessed by anyone. Today, when you buy a piece of art or a collector's item, it typically comes with a paper certificate of authenticity, which you must then keep track of forever. It is easily forgotten, lost or destroyed, creating a very fragile system for authenticity. Blockchain’s offer a simple and more secure solution to this long standing issue of proving authenticity.

Music NFTs

A music NFT is any NFT that represents ownership of music or an experience tied to music, like a live concert event or a virtual fan meet-and-greet. Music NFTs are created by minting a unique token on a blockchain, which can then be collected by music fans.
Music NFTs can be created by new artists and musicians with large fanbases. These NFTs can include anything from a recording to a composition to ticketing for a music experience. The content of each music NFT varies based on the creator and the work they decide to create.
Any artist can create a single song or audio file as an NFT. For example, omgkirby partnered with Channel Tres to create a collection of 5,550 unique songs, each with its own BPM and key. Each song comes with vocals and production by Channel Tres.

Trading Card NFTs and Digital Collectibles

NFTs bring some extra oomph to your traditional collectibles. Instead of a physical basketball trading card that sits in a binder under your bed, you can collect dynamic NFTs from the NBA’s collection “The Association,” where each card changes based on that player and team’s performance.

Photography NFTs

A photography NFT is a unique digital asset that represents a specific photograph or artwork. It is stored and recorded on a blockchain, a decentralized, immutable digital ledger technology.
Photography NFTs are stored and transferred digitally, allowing them to be easily shared and displayed online. The ownership and authenticity of a photography NFT is verified and recorded on the blockchain, allowing it to be easily transferred between users.
NFTs offer a way for photographers and artists to sell and distribute their work in a digital format, while also providing collectors with a unique and verifiable digital item.
Justin Aversano made headlines with his Twin Flames collection, a collection of 100 twin portraits. Aversano drew inspiration from his relationship with his fraternal twin for this collection. The “Twin Flames” collection became known as the first major NFT photography collection of its kind and catapulted Aversano into one of the world's highest-selling photographers.