Technology
Someone just bought a VIRTUAL ‘NFT’ house for $500,000 – and they can never live in it
AN ARTIST has sold a house that no one can ever live in for $500,000.
That’s because the house is virtual – it’s a digital file traded online just like Bitcoin.
It sounds bizarre, but it’s part of a new online trading craze.
Buyers are swapping something called NFTs, which are swapped like Bitcoin.
But unlike Bitcoin, each NFT is totally unique – so if you buy one, you’re the only person with it in the world.
Now CNBC has revealed that artist Krista Kim has sold an “NFT-minted” digital house for 288 ether.
That works out at around $500,000.
The virtual home is called Mars House, and can be viewed in virtual or augmented reality.
“Right now, a lot of the [NFT} art that’s currently available on platforms, it’s a very limited parameter of how you can present the art,” said Kim, speaking to CNBC.
“It’s presented, basically, as a digital file, a beautiful drawing or video on your screen.
“But my intention was to look beyond that.”
The buyer can upload the file into 3D worlds to experience it – and even explore it using AR or VR goggles.
“I actually foresee that we will be living in an augmented reality lifestyle within a very short period,” Kim added.
What is an NFT?
Here’s a simple guide…
- NFTs are a hot new tradable item taking the internet by storm
- The letters NFT stand for “non-fungible token”
- If something is “fungible”, it can be traded for an identical counterpart
- For instance, Bitcoin is technically fungible – you can swap one for another, and have the same thing
- Physical cash is also fungible – you could trade one £10 note for another
- An NFT is a totally unique digital token with no copies
- Like Bitcoin and other cryptocurrencies, NFTs work using a blockchain
- A blockchain is a public ledger of transactions recorded across the internet – and is totally unalterable
- The NFTs on the blockchain can be traded like Bitcoin, but they’re unique by design
- This gives them a special value, because each NFT is individual and unique
- You can turn almost any kind of data into an NFT
- People are selling digital artworks, songs and even tweets in NFT form
- More elaborate NFT sales include virtual trainers/sneakers and even a virtual house
- Importantly, NFTs are not physical – so if you buy an NFT object, you’re just owning a part of the blockchain and NOT a physical item
This isn’t the first wacky NFT sale we’ve seen.
Twitter founder Jack Dorsey is selling his first tweet as an NFT for millions.
Elon Musk has made a techno song that he’s selling as an NFT.
And Gucci is even selling virtual trainers that no one can actually wear.
What do you make of NFTs? Let us know in the comments!
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