Non-fungible tokens (NFTs), like cryptocurrency, are supported by blockchain technology. These unique digital files contain embedded information that signifies proof of ownership and have monetary value as determined by the marketplace.  

NFTs can include digital photos and videos, music, and memes. Many have been sold for millions of dollars. Digital artist Beeple sold a collage via Christie's for a record $69 million, while musician Grimes sold digital art for in excess of $6 million in March 2021.  

Below are four things to know about NFTs. 

1. They Were First Launched on the Ethereum Blockchain 

The majority of NFTs are bought and sold on the Ethereum blockchain. While the first known NFT was created by Kevin McCoy in 2014, Ethereum has since been the NFT sector leader. Other blockchains, like TRON and Bitcoin Cash, have since implemented their own NFT support systems. Prospective NFT collectors need to first purchase crypto tokens associated with the respective blockchain to buy these one-of-a-kind digital items. 

2. They Can Be Purchased in Various Marketplaces 

While NFT transactions are facilitated by blockchain technology, the digital files themselves can be purchased at various online marketplaces and some mainstream auction houses. There are marketplaces dedicated to certain types of collectibles. Digitaltradingcards, for instance, is a popular online NFT store for baseball cards. Others, like OpenSea and SuperRare, sell a broader range of content. 

3. They Are Embedded with Copyright Information Verifying Their Authenticity 

There is nothing stopping someone from simply right-clicking an NFT file and saving it to their smartphone or computer. In essence, they can save an image for free that might have cost someone millions of dollars. However, these duplicate files are not embedded with copyright information, as is the case with the original. The best comparison is a unique piece of art, ie. the Mona Lisa. While there is only one original painting, there are many prints in circulation. 

4. They Have Empowered Content Creators and Brands 

Because of NFTs, artists and other content creators now have another avenue through which they can earn income. It might be unreasonable to expect to sell a digital sticker or other file on the iMessage App Store. Selling it as an NFT is more feasible. Moreover, creators can receive a percentage of the sale of their NFTs every time they are sold. That way, as the original goes up in value, the creator will benefit financially from their popularity. 

Many brands have also taken advantage of NFTs as an additional revenue stream. Taco Bell, for instance, sold 25 taco-themed images and GIFs in 30 minutes. Some files have since been resold on the secondary market for as much as $3,500. The NBA also sells digital collectibles via NBA Top Shot.