[callumprentice]

Can someone please point me to a concise description of what an NFT is? The usual answer is "DUH! It's a non-fungible token" as if that explains everything.

I get that it's an image (maybe any digital media?) and it is associated with an entry on a blockchain somewhere but then I get confused.

For example, that beautiful graphic you're going to print and hang on your wall can still be copied just as readily as any other digital file so how is all that money someone paid for it worth anything?

If you copy it and change the color of 1 pixel (indistinguishable from the original) then reissue a new NFT, does that count?

========================================= EDIT: I won't pollute the thread with individual replies but thank you everyone for the wisdom and insight. I have a much better picture of how it all works now.

[m12k]

An NFT is basically a link to a URL stored on a blockchain. Websites can host an artist's image at a specific URL and help them sell the NFT as a kind of "crypto-autograph" for the artwork. It doesn't mean the actual artwork gets stored on the blockchain, it doesn't actually transfer ownership or copyright to the work, and it doesn't prevent e.g. the servers actually hosting the artwork from going down. It's basically a digital commemorative plaque that says "The owner of this token "bought" the artwork at [URL]".

[dcolkitt]

People will pay millions for an original Monet. Why? Digital image reproduction is perfect and the image is in public domain.

The answer is you’re buying status and provenance. The original Monet holds special value because of arbitrary cultural conventions. Someone can create a perfect replica to look at, but the replica dies not confer social status.

We now have a generation of crypto-native multimillionaires. I know many on this forum are pissed off about the fact. Many think all this crypto wealth shouldn’t exist. And many think the bubble will burst any day now.

All of which could be true. But the facts in the ground today is that there’s huge amounts of crypto native wealth. Just the same as 19th century Robber Barons are going to spend money on things that confer social status among other 19th century Robber Barons, crypto native millionaires are going to buy things that confer social status among crypto native millionaires.

For crypto native people, crypto provenance is as valuable as original copies are to Robber Barons. Again this is all just arbitrary social conventions one way or another. As long as the crypto ecosystem continues to generate massive wealth, expect the highest status goods among that subculture to command lofty prices.

[trutannus]

> I get that it's an image (maybe any digital media?) and it is associated with an entry on a blockchain somewhere but then I get confused.

Not entirely correct. The NFT confers ownership of the NFT, not the asset it "represents" unless otherwise specified in a regular old contract or terms of sale. Often times the copywrite of the NFT's asset isn't even transferred correctly to the NFT owner.

[lifeformed]

It's not an image. It's simply a piece of text that says, "This piece of text is unique. Signed, John Smith" and you can pay John Smith to edit that text to say "This piece of text is unique - Signed, John Smith and Jane Adams". This text is publicly available for all to see. Some people like to put in that text a URL to a picture they like.

[chadlavi]

A means of separating fools from their money