When NFTs became popular, I was like "WTF are these even for"?  It seemed like a get rich quick scam to me. After some research and trial and error, here is my write up:

Here are some real-life examples of NFTs in action:

1. CryptoKitties: CryptoKitties is a popular blockchain game that uses NFTs to represent unique digital cats. Each CryptoKitty is represented by an NFT, which can be bought and sold on various marketplaces.

2. NBA Top Shot: NBA Top Shot is a blockchain-based platform that uses NFTs to represent unique moments in NBA games, such as a LeBron James dunk or a Steph Curry three-pointer. These NFTs are sold in packs or individually, and their value is determined by their rarity and the demand from collectors.

3. Beeple's "The First 5000 Days" digital artwork: In March 2021, an NFT representing digital artist Beeple's artwork "The First 5000 Days" sold at a Christie's auction for $69 million. This was a groundbreaking moment for the use of NFTs in the art world, as it demonstrated the potential for digital art to be sold for significant amounts of money.

4. Kings of Leon's new album: In March 2021, the rock band Kings of Leon released their new album as an NFT. Fans could purchase one of three different types of NFTs, which included exclusive artwork and other perks such as front-row seats at future concerts.

5. Virtual real estate: NFTs are also being used to represent virtual real estate in online games and virtual worlds such as Decentraland and The Sandbox. Players can buy and sell these virtual plots of land using NFTs, which can appreciate in value as the virtual world becomes more popular.

NFT stands for Non-Fungible Token. An NFT is a type of digital asset that represents ownership of a unique or rare item, such as artwork, music, video, or other types of digital content. NFTs are stored on a blockchain, which is a distributed ledger that is secured by cryptography, and can be bought and sold like any other type of asset.

Unlike other digital assets, NFTs are unique and cannot be exchanged for an identical item. This is because they are based on blockchain technology, which ensures that each NFT is unique and can be tracked and verified. NFTs can be used to prove ownership of a particular digital asset, and they are often used in the art world to authenticate digital art and other forms of creative expression. NFTs have gained popularity in recent years, with some selling for millions of dollars.

Great, now how are they used?

There are several ways to use NFTs, depending on the type of digital asset that they represent and the purpose for which they are being used. Here are some common ways to use NFTs:

1. Buying and selling: NFTs can be bought and sold like any other type of asset, and many online marketplaces have emerged to facilitate the trading of NFTs. Buyers and sellers can use these marketplaces to transact in a secure and transparent manner, and the blockchain technology underlying NFTs ensures that ownership of the asset is transferred from the seller to the buyer in a verifiable way.

2. Collecting: Some people collect NFTs as a hobby or investment. They may be interested in owning a rare or unique digital asset, and NFTs offer a way to prove ownership and authenticity of these assets.

3. Authenticating digital art: NFTs are often used in the art world to authenticate digital art and other forms of creative expression. By creating an NFT that represents a particular artwork, an artist can prove that they are the creator and original owner of the work.

4. Gaming: NFTs can be used in games to represent virtual items such as weapons, armor, and other in-game assets. This allows players to buy and sell these assets in a secure and transparent way, and it can also help to prevent fraud and cheating within the game.

5. Royalties: NFTs can be programmed to automatically pay royalties to the original creator of the asset every time it is sold. This can be a way for artists and content creators to earn ongoing income from their work even after they have sold it to someone else.

In conclusion, NFTs offer a new way to use and trade digital assets, and their potential uses are still being explored and developed.

Key NFT Statistics

• Almost $41 billion being spent on the NFT marketplaces in 2021 alone
• An estimated 250,000 people trade NFTs each month on OpenSea
• NFT sales volume added up to nearly $11 billion in the third quarter of 2021
• NFT sales grew by 131 times between 2020 and 2021
• The Most Expensive NFT ever sold is “The Merge” $91.8 million