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A: OK, fine – the practical example you gave for NFTs doesn’t actually represent what people mean when they talk about NFTs today, and NFTs today are on the Etherium blockchain, not Bitcoin. But what ARE they?

B: They’re a way to create artificial scarcity out of digital files.

A: Artificial what?

B: Scarcity. Artificial scarcity.

A: Aren’t NFTs “non-fungible?” Based on your description, that would make them scarce.

B: That’s true… if NFTs were actually NFTs. But the NFTs everyone is talking about aren’t actually NFTs.

A: …I hate that I keep saying this, but… what?

B: NFTs have a very specific definition. People are taking things that don’t meet that definition and pretending they do. They call those things NFTs, but they really aren’t.

A: If they’re not NFTs, what are they?

B: Have you ever bought something you thought was a well-known brand, but after taking a closer look at the label you realize it’s a fake?

A: NFTs are Prongles?

B: NFTs are Prongles.

EDITOR’S NOTE: Prongles.