The Basics On NFTs: The Newest Cryptoverse Craze
Feb 14, 2022
So what is an NFT?
In the most basic terms, an NFT is a cryptographic token that exists on a blockchain and is used to establish proof of ownership of digital artwork, videos, GIFs, collectibles, and other digital assets. While NFTs use the same blockchain technology that underpins cryptocurrency, NFTs themselves are not a traditional currency, though they can operate similarly to currency. Some people call them JPGs because they are literally graphic images, but they represent much more than just a simple JPG file.
NFTs have been generating a major buzz in the tech and art sectors for years now, but after Christies auction house sold a single NFT collage from the digital artist Beeple for a staggering $69.3 million this March, NFTs have begun making mainstream headlines. Since then, a number of other big-money NFT sales have made the news, including Twitter co-founder Jack Dorseys first-ever tweet made into an NFT, which sold for $2.9 million; a video clip of a LeBron James slam dunk sold for more than $200,000; and a GIF of Nyan Cat (a flying cat with a Pop Tart for a body) went for $600,000.
At this point, you might be wondering why anyone would spend such vast sums on digital images that you can download from the Internet for free. Here, well answer that question and explain the basics of what you need to know about NFTs, including how they work; what makes them so valuable; where you can get them; and why they have the potential to revolutionize the way in which we own, exchange, and consume both digital and real-world assetsalong with how to ensure your estate plan covers them if you happen to own one.
Whats the Difference Between Cryptocurrency and NFTs?
While NFTs and cryptocurrencies like Bitcoin and Ethereum are all part of the Cryptoverse, cryptocurrency is a fungible asset, meaning it can be traded or exchanged with another identical unit of the same value. For example, one Bitcoin is equal in value and can be exchanged for another Bitcoin, just like one dollar is always worth the same as another dollar.
However, NFTs are non-fungible, meaning each NFT is totally unique and not mutually interchangeable. Given this, no two NFTs are ever the same, and they cannot be replicated. Think of it in terms of traditional artwork: anyone can buy a Mona Lisa print, but only one person can own the original artwork.
How Did NFTs Get Started?
Although primitive versions of NFTs, such as Colored Coins, have existed since 2012, the first NFTs to really become popular were CryptoKitties. Launched in 2017, CryptoKitties is a virtual game that allows players to adopt, raise, and trade virtual cats on the Ethereum blockchain.
Each CryptoKitty has unique attributes, and they can even reproduce to generate entirely new offspring, which have different attributes and valuations compared to their parent kitties. CryptoKitties became immensely popular, and within a few weeks, fans of the virtual cats had spent $20 million worth of ETH (Ethereum token) on the game, with some virtual cats selling for over $100,000.
How Do NFTs Work?
As with cryptocurrency, a record of who owns each NFT is stored on a blockchain ledger. The vast majority of NFTs reside on the Ethereum blockchain, though other blockchains like Bitcoin Cash and FLOW also support them. Whenever a new NFT transaction is verified, its added to the blockchain, where it cannot be changed, replicated, or forged.
The code embedded in NFTs can include specific information about the asset and its creator. For example, an artist can sign their digital artwork by including their signature in the NFTs metadata. The unique information related to an NFT is stored in whats known as a smart contract, which is one of the most unique and powerful features underpinning NFT technology.
A smart contract is a digital contract in which the terms of the agreement are set in code. A smart contract can be programmed to execute a specific action when a set of predefined conditions are fulfilled. For example, a smart contact can be programmed to make royalty payments to an NFTs creator whenever their digital art is sold to a new owner.
Why Do NFTs Have Value?
Traditional pieces of art like paintings are valuable precisely because they are one of a kind, yet digital art can be easily duplicated an infinite number of times. With NFTs, digital art and other assets can be tokenized, which creates a digital certificate of ownership that allows the buyer to own the original item.
The value comes from both the scarcity and collectibility of the asset, as well as its potential for future sale. NFTs work like any other speculative asset, in that you buy it and hope that the assets value increases over time, so you can sell it for a profit.
NFTs typically increase in value for three reasons: 1) they are part of a series that gives you access to an exclusive club or community, 2) if they include licensable or brandable content that could be used to increase the value of the intellectual property, and 3) they can be used to flex or signal for status purposes (aka bragging rights).
Essentially, NFTs transform, or tokenize, digital art, videos, and other collectibles into one-of-a-kind, verifiable assets, which allows them to be easily bought, sold, or traded on the blockchain. NFTs are basically like any other collector's item, such as a painting or a vintage baseball trading card, but instead of buying a physical item, you're instead paying for a digital file and proof that you own the original copy.
Yet its the intellectual property (IP) aspect of NFTs that make them most interesting. Once you own an NFT, you have ownership of the IP representing the content of the NFT. As the owner of this now licensable content, you can use the content for branding, or you can even develop an entire persona or creative pursuit around your NFT.
You can see this in action with some of the owners of NFTs from the Bored Ape Yacht Club (#BAYC) NFT Collection. Universal Music Group bought 4 Bored Apes, and has begun branding them as the newest band theyll promote, called KINGSHIP. KINGSHIP will release music and products, building a fan base around this collection of four digital apes.
Building upon the success of the BAYC series of NFTs (a collection of 107 Bored Apes recently sold for $24.4M in a Sothebys auction), other creators have begun to release sets of 10,000 NFTs with hopes of mimicking the success of the BAYC series.
What Else Are NFTs Being Used For?
Currently, the majority of the NFT market is focused on collectibles, such as digital artwork, GIFs, virtual trading cards, videos of sports highlights, digital music, virtual avatars, and video game skins. However, NFTs are now even attracting the attention of major brands, and were seeing a number of big-name companies capitalizing on the trend.
For example, Nike has patented its own blockchain-based NFT sneakers, which it calls CryptoKicks. Marvel Comics has released its own NFT collectibles based on Spider Man and Captain America. Even Taco Bell has jumped on the NFT bandwagon with a collection of taco-themed images and GIFs. In collaboration with the NFT marketplace VeVe, Disney released its Golden Moments NFT collection, which features digital statues inspired by some of the most beloved characters and moments from Disney, Pixar, Marvel, Star Wars, and other Disney franchises. And in September 2021, Hollywood got in on the action, when the film Zero Contact became the first feature-length movie to be released as an NFT.
Musicians have also been releasing NFT-based songs, albums, and other music-related items with major success. For example, pop stars like Kings of Leon, Grimes, and Steve Aoki have all created NFTs. Moreover, Rolling Stone reports that NFTs could revolutionize how musicians connect and market their music to fans by including not only songs and albums as NFTs, but also videos, artwork, 3D avatars, wearable accessories, and even tickets that give fans a chance to have a virtual meet-and-greet with the artist.
How Can You Buy An NFT?
If you are looking to get in on the NFT Cryptoverse, youll need to access the proper technologyand load up on cryptocurrency to fund your purchase.
First, youll need to get a digital wallet that allows you to store your crypto and NFTs. Metamask is a popular option because it connects directly to marketplace platforms, such as OpenSea, where you can buy and display your NFTs.
Then youll need to purchase cryptocurrency to make the purchase, and since the most popular blockchain for NFTs is currently Ethereum, your best bet is to get their version of digital coins, which are called ether (ETH).
From there, youll want to visit the NFT marketplace where the NFTs are sold. Some of the most popular NFT marketplaces include OpenSea, Mintable, Nifty Gateway, Axie Marketplace, and Rarible.
Additionally, there are also niche marketplaces for more specific types of NFTs, including NBA Top Shot for basketball video highlights; Valuables auctions off famous autographed Tweets like Dorsey's; and Autograph, which is a platform launched by NFL superstar Tom Brady that offers a variety of NFT collectibles from sports icons like Tiger Woods, Simone Biles, Wayne Gretzky, and Tony Hawk. Due to the high demand for certain NFTs, the tokens are often released in batches, known as drops, much like when batches of concert tickets are released at specific times. As with any other popular event, theres often a rush of fans eager to snatch up the most in-demand NFTs when the drop starts, so youll need to pre-register and have your wallet full of crypto and ready to buy.
What Are the Future Potential For NFTs?
While buying a virtual cat may sound like an extremely trivial venture, the future potential for NFTs and how they can be used has more serious implications, especially in business and finance. For example, NFTs have already been used in a real estate transaction, in which a millennial from Silicon Valley purchased an NFT that gave him ownership of a studio apartment and a piece of art by the famous local street artist Chizz.
By allowing for the digital representation of physical assets, NFTs offer the potential to reinvent the way we own, exchange, and consume just about any asset. Perhaps the most obvious benefit of NFTs is increased market efficiency. The conversion of a physical asset into a digital asset streamlines the process of identifying IP, removes intermediaries, and creates entirely new markets.
Obviously, the digital representation of physical assets is not exactly new or novel. However, when you combine this concept with the benefits of the trustworthy and tamper-proof nature of blockchain-powered smart contracts, NFTs stand to become a potent force for change. While many see NFTs as merely another passing fad and expect the NFT bubble to burst any day now, skeptics said exactly the same thing about Bitcoin. With this in mind, we remain cautiously optimistic about the future of NFTs, and only time will tell how this new technology pans out as the future unfolds.
Safeguard Your Digital Assets
As with cryptocurrency, if you currently own or plan to acquire NFTs, the first and most important step in securing these assets is to let your family, trusted partners, and of course, your lawyer, know you own it. If no one knows you own these assets, they will be lost forever when you die. You can document ownership of these assets by including your NFTs and cryptocurrency in your Family Wealth Inventory (a key component of our Life & Legacy Planning Process) listing all of your assets and liabilities. Along with the amount of cryptocurrency and number of NFTs you own, you should also include detailed instructions about where these assets are located and how to find the instructions to access them, including the encrypted passcodes needed to unlock your account. Just make sure to keep these instructions in an absolutely secure location because anyone who has them can take your crypto and NFTs. As part of our Life & Legacy Planning Process, well work with you to ensure that your cryptocurrency and NFTs are properly documented, as well as secure.
As technology continues to evolve and our lives become increasingly digitized, its vital that you adapt your estate planning strategies to keep pace with these changes. As your Personal Family Lawyer, we can assist you in updating your estate plan to include not only your traditional wealth and property but all of your digital assets, as well. Contact us today to learn more.
This article is a service of Sharek Law Office, LLC. We dont just draft documents; we ensure you make informed and empowered decisions about life and death, for yourself and the people you love. That's why we offer a Life and Legacy Planning Session, during which you will get more financially organized than youve ever been before, and make all the best choices for the people you love. You can begin by calling our office today to schedule a Life and Legacy Planning Session and mention this article to find out how to get this $750 session at no charge.
Other Articles You May Like
Why Every Family Needs a Senior Care Advocate: Your Guide to Smarter, Safer Aging
Navigating the complexities of aging can feel overwhelming. Whether you're a senior making plans for your future or a family caregiver trying to provide the best care for a loved one, knowing where to turn for reliable help is critical. Thats where a Senior Care Advocate steps inyour trusted partner in managing aging-related decisions, healthcare planning, and long-term support.What is a Senior Care Advocate?A Senior Care Advocate is a professional who specializes in supporting older adults and their families as they face the many challenges of aging. Their role is part guide, part liaison, and part problem-solver. Whether it's managing healthcare appointments, understanding confusing medical diagnoses, or finding the right long-term care options, a Senior Care Advocate is there to help every step of the way.These advocates bring years of experience in elder care, healthcare systems, and long-term care planning. They often have backgrounds in social work, nursing, gerontology, or senior services. But more importantly, they understand the emotional weight that comes with caregiving and agingand they offer compassion alongside their professional expertise.Do I Need a Senior Care Advocate?One of the most common questions families ask is: How do I know if I need a Senior Care Advocate? The answer depends on your unique situation, but here are a few telltale signs: Youre overwhelmed with coordinating medical care and doctor appointments. You're unsure about long-term care options like assisted living, memory care, or skilled nursing. Youre facing legal, financial, or insurance questions you dont know how to answer. Youre a long-distance caregiver who cant always be present. Youre worried about the safety or well-being of a loved one who lives alone. In all these situations, a Senior Care Advocate can provide guidance, coordinate services, and even represent you or your loved one at medical appointments or facility meetings.What Services Does a Senior Care Advocate Provide?Senior Care Advocates wear many hats and offer a wide range of services, including:1. In-Home Care CoordinationIf remaining at home is a priority, an advocate can help make it happen safely. They evaluate care needs, hire and supervise caregivers, and provide training for both families and professionals. They ensure that home care is not just availablebut effective, compassionate, and tailored to the individual.2. Medical Support and NavigationUnderstanding the healthcare system can be confusing, especially when dealing with chronic illness or multiple diagnoses. A Senior Care Advocate will: Arrange and attend medical appointments. Help interpret diagnoses and treatment plans. Coordinate testing, therapies, and even emergency room visits. Act as a liaison between seniors, family members, and healthcare providers. Their support can be life-changing, particularly for seniors managing complex conditions or families trying to stay informed.3. Long-Term Care Planning and TransitionsWhen living at home is no longer possible, finding the right long-term care community is essential. A Care Advocate knows the ins and outs of senior living optionsfrom assisted living to memory care and nursing homes. Theyll arrange facility tours, help with admissions paperwork, and even assist with the physical move.After the transition, they continue providing oversight to ensure your loved one is safe, comfortable, and receiving quality care.4. Benefit Application AssistanceUnderstanding what financial and medical benefits you qualify for can be overwhelming. Senior Care Advocates help determine eligibility and assist with applications for: Veterans benefits Social Security and SSDI Medicaid/Medical Assistance Private insurance coverage This process is often time-consuming and complex, but an experienced advocate can streamline it and ensure nothing is missed.What to Look for in a Senior Care AdvocateNot all advocates are the same. When choosing one, ask about their background, training, and areas of specialization. Dont hesitate to request references or testimonials from other families.A qualified Senior Care Advocate should have: Experience in elder care or healthcare systems Knowledge of local resources and support programs A compassionate and proactive communication style Clear professional boundaries and confidentiality standards Real Support for Real FamiliesAt Solutions for Independence, we understand how emotionally and physically demanding caregiving can be. For over 20 years, we've helped hundreds of seniors and their families navigate the aging journey with confidence. Whether its in-home care planning, crisis management, or senior housing transitions, we provide the kind of expert support that brings peace of mind.We believe in providing Care, Advocacy, and Compassion as a Professionbecause every older adult deserves to age with dignity, and every caregiver deserves support.Why Senior Care Advocacy Matters More Than EverTodays aging population is living longer but often with more complex health needs. Family caregivers are often juggling full-time jobs, raising children, and managing their own health. The role of a Senior Care Advocate is no longer a luxuryits becoming a necessity.By working with a trusted advocate, families can: Avoid caregiver burnout. Prevent medical or financial crises. Make informed choices about care options. Save time, money, and emotional energy. Whether youre planning ahead or in the middle of a crisis, a Senior Care Advocate can be your greatest ally. They provide the tools, knowledge, and hands-on support you need to make the best decisions for yourself or your loved one. If youre feeling uncertain or overwhelmed, remember this: You dont have to do it alone. Let an expert advocate help you find clarity, confidence, and comfort in every stage of the aging journey.At Solutions for Independence we have specialized in and provided Care Advocacy and long-term care planning services for over 20 years and have helped hundreds of seniors and families. Give us a call today at 412.999.7892.
Navigating the Emotional Journey of Moving a Loved One into Senior Living
Making the decision to move a loved one into senior living is never easy. Its a choice that often comes with a swirl of emotionsgrief, guilt, uncertainty, and even relief. For many families, it marks the beginning of a new chapter that is both necessary and deeply emotional.At Assisted Living Locators, we understand the complexity of this transition. We're not just here to help you find the right placewere here to walk alongside you as you navigate the feelings, questions, and challenges that come with it.The Emotional Weight of the DecisionMoving a parent or loved one out of their homewhere memories were made and independence was cherishedcan feel like a loss. Even when its the right time, the reality of change can be overwhelming.Families often struggle with questions like: Are we doing the right thing? Will they feel abandoned? How do we even begin to choose the right place? These are not just logistical concerns. They're emotional ones. And theyre completely valid.You Are Not AloneEvery family has a unique story, and no two transitions look the same. Thats why a one-size-fits-all approach doesnt work. At Assisted Living Locators, we start by listeningreally listeningto your concerns, your hopes, and your loved ones needs.We help you: Understand the options available, from independent and assisted living to memory care and beyond. Navigate conversations with compassion, helping your loved one feel heard and included in the decision-making process. Find peace of mind in knowing that a knowledgeable, local expert is by your side. More Than a Placement ServiceWhat sets us apart is that were not just matching families to facilities. Were guiding people through one of lifes most sensitive and significant transitions. We offer not only practical guidance, but emotional supporthelping you make decisions with confidence, clarity, and care.Well tour communities with you, ask the hard questions, and advocate for what matters most to your family. And we do it all at no cost to you.A Step Toward Peace of MindIts okay to feel the weight of this moment. It's okay to need help. And it's okay to prioritize both your loved ones well-being and your own peace of mind.Let us be a trusted partner in this journeyso you dont have to walk it alone.Contact us today at pghassistedliving.com or (724) 972 -3202 to take the first step. Were here to help with heart, knowledge, and unwavering support.
Everyday Digital Tech Is Protecting Seniors' Brain Health, Study Says
A new study published on April 15, 2025, reveals that using everyday digital technologylike smartphones, computers, and tabletsmay actually protect brain health in older adults rather than harm it. Contrary to longstanding fears that reliance on digital devices contributes to cognitive decline, researchers found that these technologies may play a positive role in preserving memory and thinking skills. The study, conducted by scientists from the University of Texas at Austin and Baylor University, analyzed data from 57 prior studies, covering more than 411,000 adults with an average age of 69. It showed that those who regularly used digital technology had a 58% lower risk of developing cognitive impairments compared to those who did not. The researchers argue that using digital devices can challenge the brain in meaningful ways. Tasks like reading news online, sending emails, using GPS, or managing a calendar require mental engagement and memory, helping to keep the brain active. These actions involve navigating apps, understanding icons, recalling passwords, and making decisionscognitive processes that mirror many of the brains executive functions. In other words, regular interaction with technology may act like mental exercise, reinforcing cognitive skills much like physical activity helps maintain muscle strength. One of the most notable aspects of the findings is how they contradict popular concerns about digital dementia, a term used in recent years to describe the belief that technology use causes memory problems by making people too reliant on external tools. Instead of supporting this idea, the researchers found the opposite: older adults who stayed digitally engaged were less likely to show signs of cognitive decline. This suggests that fears around the negative effects of digital tools on the aging brain may be overstated or even unfounded. The researchers proposed three main reasons why digital technology may be beneficial: complexity, connection, and compensation. Complexity refers to the mental challenges posed by using technology, which can stimulate cognitive functions. Connection refers to the social aspectstaying in touch with family and friends through messaging, video calls, or social mediawhich has long been linked to better brain health. Compensation describes how digital tools can help older adults cope with minor memory issues, such as by setting reminders or keeping track of important information, reducing stress and promoting independence. Experts outside the study also praised the results. Dr. Leah Mursaleen from Alzheimers Research UK said the findings were encouraging and aligned with what is already known about mental stimulation and brain health. Caroline Abrahams of Age UK emphasized that while the benefits of digital engagement are clear, some older adults still struggle with access or confidence using these tools. This underlines the importance of digital inclusionensuring all seniors have the opportunity, training, and support needed to benefit from the digital world. The research carries significant implications as global populations continue to age and technology becomes further embedded in daily life. As more adults over 50 begin to age into their 70s and 80s with a lifetime of digital experience, understanding how to harness technology to support mental health will be increasingly important. While the study does not suggest that tech use alone is a magic bullet against dementia, it does point to a relatively simple, low-cost, and accessible way to help preserve cognitive function over time. In summary, the study challenges outdated assumptions that technology is harmful to older minds and instead presents a hopeful narrative: when used actively and meaningfully, digital technology can support brain health, improve quality of life, and help older adults stay mentally sharp. As researchers continue to explore the intersection of aging and technology, these findings offer strong evidence that staying digitally engaged may be one of the easiest and most effective tools for protecting cognitive function later in life.