Non-fungible tokens, most commonly referred to by the shorthand acronym, NFTs, are tokens that usually live on the Ethereum blockchain and are implemented as smart contracts. They can contain additional metadata, such as a pointer to a digital media asset, and each token is unique ("nonfungible"), which allows their provenance and ownership to be easily established.
Individual artists and brands have turned to NFTs to sell digital art and trading cards, and since the beginning of the year, purchases of these have exploded. This boom has not only been driven by crypto investors spending eye-popping amounts to purchase high-profile NFTs -- $69m in the largest sale to date -- but also by consumers buying digital trading cards created by one of the most popular sports leagues in the world.
Here's what brands need to know about NFTs.