WTF is an NFT

Digiday 11 Mar 2021 05:01
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March 11, 2021 by Kayleigh Barber

Last week, Twitter founder Jack Dorsey announced he is selling the social platform’s first-ever tweet: a post he made on March 21, 2006 that reads, “just setting up my twttr.”

For nearly 15 years the tweet existed without any associated monetary value, but just one day after going on the virtual auction block the highest bid hit $2.5 million (or 1630.6 ETH — cryptocurrency Ethereum’s denomination). How did its value change in less than a week?

Dorsey created a tokenized version of the tweet, an NFT, that gives the buyer the digital rights of ownership.

What is an NFT?

NFTs are non-fungible tokens. They act as a non-duplicable digital certificate of ownership for any assigned digital asset. Basically, it is a smart contract that is put together using bits of open source code, which anyone can find from platforms like GitHub, and used to secure that digital item. Once the code is written, it is then minted, or permanently published, into a token (most commonly a token called an ERC 721) on a blockchain, like Ethereum.

“The average NFT has a footprint of around 340 kWh, 211 KgCO2. This single NFT’s footprint is equivalent to a EU resident’s total electric power consumption for more than a month, with emissions equivalent to driving for 1000Km, or flying for 2 hours.”

From Akten’s Medium post, published December 14, 2020.

There are also two main security risks with NFTs at the moment

What should I keep my eye on?

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