I still dont get what an NFT is.
Well...
It’s a database of unique numbers. Each mathematically dependent on all the previous ones. Generated by a formula that is CPU intensive and that requires access to the whole database and communication between all the machine participants. That database can be broken up across multiple sites.
...
@darjr actually explained the blockchain, which is a distributed ledger technology to record transactions. That's the "database" they're talking about. Which, okay, so all transactions are recorded somewhere. Either they're anonymized, in which case you can't actually use the blockchain to create accountability (which is a frequent battle cry of the pro-blockchainers) or it's not anonymized in which case you are broadcasting all of your transactions (which is... suboptimal for financial transactions, for reasons I don't think I need to explain).
An NFT is where you use the blockchain to commoditize (it's a word, spellcheck agrees, look it up if you don't believe me, blame the fact that we're in the Darkest Timeline) a link to something, say an image.
That's it. If you "buy an NFT," you've bought a URL, basically. I could actually type that URL into my browser myself, and not pay you a dime, and it's not illegal.
Why would someone pay real money for it? Because they've been convinced that it'll go up in value, because you can look on a private exchange (they're all unregulated private exchanges) and see where someone has anonymously paid more for it the last time it got sold. Who? It's anonymous (see above) so there's no way to tell. Why? Well, NFTs (much like fine art in general) are frequently used for money laundering, so probably somebody who wanted clean bitcoins "bought" the NFT, maybe from one of their other accounts. So, if you buy it, that makes you a chump who helped the launderer even make a profit from a scheme where he was already making money.
"But,
@Liane the Wayfarer, what if it wasn't a launderer? I just want to get rich!" Well, you still saw where I told you it was a URL, right? It's only worth something because somebody else decided they wanted it. Why do you want it? Because you saw where somebody else wanted it? You realize that's an unhealthy behavior, right? That people are exploiting to make money? Well, the blockchain technology uses an enormous amount of processing power, enough that if you run a computer that just does that, and connect it to your house's electric grid, you'll at least double your bill.
There are cleaner, more environmentally friendly ways to separate a fool from his/her money. Use one of those, please. If you must be a con artist, at least have a care for the environment that you also have to live in.
EDIT: "But,
@Liane the Wayfarer, you said an NFT is a URL? That's a string that points to a file, right? What if they move the file?" Well, then your NFT points to nothing. That's it. You don't get to change the NFT's content, it's tied to the blockchain ledger. Better luck next time. Maybe the next one will point to a file that never moves, ever, in the history of the Web. You know, like no page in the history of the Web.
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