NFT stands for Non-Fungible Token. We have deciphered the acronym but what does it really mean? NFT is basically a unique data that can’t be altered. We cannot change NFT but we can still sell it to someone else. It’s a relatively new concept in the crypto world but it’s getting more and more interest and media coverage. Basically, unique data can be used to digitally sign other digital data and serves as proof of ownership. Signing data using cryptographic functions isn’t anything new in computer science yet the proof of ownership is.

You may have heard about a recent jaw-dropping auctioning record where a piece of digital art was sold for $69.3 million! Yes, you read that right — digital art — 0s and 1s converted into bytes converted into image on screen — one of many digital images you can easily right click and save to your desktop. A perfect 1 to 1 copy. In fact, indistinguishable from the original!

You can actually copy and save the image from Christie’s website within seconds (right click is blocked but that’s not any security). Well done! Are you a fine art thief now? Not really… as this is how the Internet works! Before you can actually view any image, your computer or smartphone will download a copy of all images for you! It already copied it for you! Confused? Don’t be!

NFT is basically a proof of purchase or ownership. It works the same way as a piece of paper with handwritten last will or a legal document that transfers ownership of an asset to a new owner.The paper itself is worth nothing but what makes it valuable is what’s written on it and the fact that other people will recognise the writing as legal and not questionable.

Obviously, paper documents can be modified, changed or reproduced. There is counterfeit money and documents in circulation. We need to be able to distinguish real ones from fake and thus we started to build organisations that serve as trust authorities — banks, courthouses, land registry etc.

Here is where NFT comes into play and can take proof of ownership to the XXI century. Everyone can copy digital data but the copyrights, the ownership can be embedded forever in blockchain. Actually, we can use NFT for real, physical objects too. There is nothing that can stop us.

From: https://medium.com/geekculture/nft-explained-519edbb46560