CHICAGO (WBBM NEWSRADIO) -- A new type of technology that is the domain of artists and speculators could revolutionize stock trading and real estate transactions.
They are called NFTs, or non-fungible tokens, and right now, speculators are spending hundreds of thousands of dollars on works of art with the stamp of digital ownership.
Technology writer Shelly Palmer told the WBBM Noon Business Hour that NFTs are powered by practical technology that can be used in countless ways.
"In practice, an NFT is a smart contract, and for those who don't know what a smart contract is, it is exactly like a regular contract - the difference is that when the terms and conditions of a smart contract are met, the contract executes automatically," Palmer said, "and you will be remunerated the proper amount of cryptocurrency based on the smart contract. So, that is what an NFT actually is."
For example, he said, NFTs and smart contracts could be the future of stock trading and purchasing real estate.
"So you could set it up where your house will close, literally close, when someone puts the money in. And that's kind of what happens now, and there's an awful lot of things to sign, but that could ultimately be digitized easily," Palmer said.
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