The Truth is Powerful
Why NFTs make no sense (and how that won’t hold them back)
If you’re confused by blockchain and cryptocurrency , hang on to your virtual wallet: Nonfungible tokens are the latest trend in the virtual value world and make their predecessors look logical.
Most people struggle with the opaque name “nonfungible token”. “Pretty much every one of those words causes confusion,” says Daniel Van Boom, CNET News Reporter who wrote NFTs don’t make sense, but that won’t stop them.
“Nonfungible” means something that is unique and cannot be replaced by another one the way a $1 bill can be replaced by any other $1 bill. “Token” refers to a digital token or certificate, not a tangible thing.
Nonfungible tokens are made so by blockchain technology, recording the owner of the NFT in an openly verifiable, immutable ledger. But that does not mean an NFT affords copy protection. “The token is essentially a certificate of authenticity,” says Van Boom.
“So if I buy an NFT for a tweet, the token authenticates me as the owner of that tweet,” but that doesn’t limit ownership of perfect digital copies of it. Computer text or files are easily and perfectly duplicated, as any computer user knows. The whole thing starts to smack of Alice in Wonderland.