Non-fungible tokens (NFTs) verify ownership of digital assets using, primarily, Ethereum. This has enabled digital marketplaces, where creators sell their work, track them, and even get paid again from future resales.

NFTs are super hot right now as they get applied to everything from NBA Top Shot to the digital art market.

The ascendance of NFTs is fostering a digital art explosion with marketplaces like SuperRare showcasing the artists and their art.

It’s so early and fairly valuing any of this stuff is nearly impossible, but at the same time, wonderful young artists are getting discovered and getting paid.

Plus, people know who owns what.

The piece in the header above, titled Mechanical, was created by 25 year old artist Sean Williams, and recently sold for 2 ETH (~$3,000). What’s more, if the buyer resells the work, Mr. Williams will get a cut of that sale too as ownership is tracked on the Ethereum blockchain.

This is fantastic for the artist and it feels like the beginning of something new and incredible, though we’re not sure exactly what.

Here’s a screenshot of the SuperRare Discovery Page:

Curated NFT Link Festival

While NFTs are a potentially profound application of decentralized technology, we recognize there’s a steep learning curve. So, for those who might be interested, here are a few curated reads on the subject.

Coindesk’s Ollie Leech has one of the best NFT explainers we’ve seen so far, so it’s a solid place to begin.

Packy McCormick frames Web 3 and the open metaverse descriptively and historically in what is beginning to feel like a defining write up.

A16z’s Chris Dixon details how NFTs might fundamentally improve the economics for artists and other creators.

Scott Belsky extols the virtues of CryptoArt and what might come next.

And here’s The New York Times piece on Beeple selling his work for millions. Seriously.

Phil Pearlman is the Chief Behavioral Officer at Osprey Funds.

This information should not be relied upon as investment advice, or a recommendation regarding any products, strategies, or any investment in particular. This information is strictly for illustrative, educational, or informational purposes and is subject to change. The author of this article owns bitcoin, directly and through the Osprey Bitcoin Trust.