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What is an NFT anyway?

This is a description I wrote to a fb comment:

It's a digital collectible. You can buy a URL that will show you a picture, and it shows up on the blockchain proving that you paid money for the URL. You can also resell the URL.

It's kind of like buying some genuine Louis Vuitton, and showing it off, except, there's no "thing". Also, the people you are showing off to are, basically, other people who bought LV. And each LV item is slightly different. But they are all genuine, no fakes.

Also, it's artwork, but typically, it's a computer doing some automated copy-pasta to produce a picture, based on a library of artist-created parts. Kind of like Colorforms or Mr. Potatohead.

The technical details are:
* blockchain - a shared ledger of transactions
* coin - unit of currency used to conduct transactions
* token - aka coin, a piece of data that represents value
* non-fungible token (NFT) - a token that's unique, similar to a URL, but also represents some value, like real estate

Coins, tokens, NFT, are created through software that runs on the blockchain. The blockchain is a database that can also run code. The database is supported by a network of computers that replicate the entire database, using technologies that allow many unrelated parties to participate in the project.

This stuff is popular with capitalists, for many reasons, but mainly because they think it'll create a system that allows money to be exchanged without central banks or governments.
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