EXPLAINER: What's this craze for 'NFTs' all about, anyway?

Digital Art
Posted at 12:36 PM, Mar 12, 2021
and last updated 2021-03-12 15:36:33-05

LONDON (AP) — A digital art piece, tweaked using cryptocurrency technology to make it one-of-a-kind, sold at auction this week for nearly $70 million.

That transaction made global headlines and buoyed booming interest in these kinds of digital objects, which have captured the attention of artists and collectors alike.

These non-fungible tokens, or NFTs, solve a problem central to digital collectibles: how to claim ownership of something that can be easily and endlessly duplicated. NFTs confirm an item’s ownership by recording the details on a digital ledger known as a blockchain, which is public and stored on computers across the internet.