Unless you have been hiding under a rock, you have probably heard of “non-fungible tokens” or NFTs, the new fad that is sweeping the cryptocurrency and art collecting world. Many have compared NFTs to the pet rock craze that swept the US in the late 1970s, when Americans paid US$3.95 to buy a small rock — a plain, ordinary, eggshaped stone, something anyone could dig up in their backyard.

NFTs, however, are no random piece of stone. They contain anything digital, including drawings, songs or items within video games, or even animated GIF (Graphics Interchange Format) videos . Indeed, anything in digital form that is collectible.

NFTs allow you to buy or sell “unique” digital assets, whether it is a JPEG digital image file, MP3 audio file or a tweet, and also keep track of who owns them using the blockchain — a database that collects information together in groups — which serves as a public ledger or a fixed record of data “blocks”. An NFT can be a photograph, an artwork, a video clip or popular tradable and collectible sports cards, with the blockchain keeping track of the ultimate ownership.

To continue reading,

Sign in to access this Premium article.

Subscription entitlements:

Less than $9 per month
3 Simultaneous logins across all devices
Unlimited access to latest and premium articles
Bonus unlimited access to online articles and virtual newspaper on The Edge Malaysia (single login)

Stay updated with Singapore corporate news stories for FREE

Follow our Telegram | Facebook