What is NFT.

Individual images—or perhaps the full collage of images—can be viewed for free on the internet. So, why are people prepared to spend millions of dollars on something that might be easily screenshotted or downloaded?

Because a non-financial transaction permits the buyer to keep the original object. It also comes with built-in authentication, which acts as proof of ownership. The "digital bragging rights" are almost as valuable as the item itself to collectors.

NFTs are also one-of-a-kind, or at the very least one of a very small run, and contain unique identifying codes. "Essentially, NFTs generate digital scarcity," explains Arry Yu, managing director of Yellow Umbrella Ventures and chair of the Washington Technology Industry Association's Cascadia Blockchain Council.

This is in sharp contrast to the vast majority of digital products, which are nearly always available in endless quantities. If a certain asset is in demand, cutting down the supply should theoretically increase its value.

However, many NFTs have been digital works that already exist in some form elsewhere, such as legendary video clips from NBA games or securitized versions of digital art that are already floating around on Instagram, at least in these early days.

For example, acclaimed digital artist Mike Winklemann, better known as "Beeple," created "EVERYDAYS: The First 5000 Days," possibly the most famous NFT of the moment, which sold at Christie's for a record-breaking $69.3 million.

An NFT is a digital asset that represents real-world artefacts including art, music, in-game items and films. They're bought and traded online, often using cryptocurrency, and they're usually encoded with the same software as many other cryptos.

Despite the fact that they've been there since 2014, NFTs are gaining popularity currently as a popular means to buy and sell digital artwork. Since November 2017, a whopping $174 million has been spent on NFTs.