Thinking about NFT (non-fungible tokens) I realize that they are a lot like Asset Backed Securities, or Mortgage Backed Securities, or any similar structured finance securities.
What are ABS? They are certificates that represent ownership in a pool of assets. The assets are not physical, they exist only as entries in a computer. Whether it is a mortgage loan, or pool of credit card receivables, they all exist only in the computers of banks.
What are NFT? They are computer certificates that demonstrate ownership of something that exists only on a computer entry.
What is the difference between an ABS and NFT… an ABS requires an army of bankers, lawyers, and others costing millions to bring to market.. and NFT can be created for less than the cost of a cup of coffee.
Look for NFT to make inroads into finance.