NFTs, aka non-fungible (crypto) tokens represent a unique digital item, such as images, videos, motion graphics, artwork, music, etc.
these NFTs are managed on a blockchain (the blockchain used is extremely important), for tracing the ownership and transaction history of each NFT. each NFT is also provided a unique code and metadata, that no other token or user can duplicate. this makes them impossible to counterfeit, and authenticated in real-time.
take the example of a video NFT — what’s the point of having a video moment as an NFT, if I could download it from YouTube?
sure, you can download any video from YouTube or any other source, but that’s like buying a DVD (if you’re too young to remember DVDs, here’s an image of one) — you don’t own the video — it’s not yours — you merely have a copy. on the other hand, NFTs give you ownership rights! :)
the rationale behind buying the original is similar to luxury goods — although there are a plethora of counterfeits, most aspire to own the originals, due to the guarantee of authenticity.
circling back to the YouTube example — try selling the downloaded copy online — it doesn’t hold any value. but were you to buy its NFT, the blockchain will authenticate it for you, in a manner that's impossible to circumvent. this is what makes the NFT valuable. anyone, anywhere in the world with an internet connection can verify your NFT’s authenticity and enter into a transaction with you if you choose. the decentralized nature of it all is a testament to the true power of the blockchain.
