Dubai Police are jumping on board the latest digital craze by releasing a free collection of 150 non-fungible tokens, widely known as NFTs.
The digital tokens represent objects such as art, music and video games and are bought and sold online — often at a huge price — typically using cryptocurrency.
Dubai Police’s offerings aim to highlight innovation, security and communication, though specific details of what form they will take has not been disclosed.
A quick guide to NFTs
NFTs are unique assets which cannot be exchanged for another item. They are stored and verified using blockchain technology.
The value of an NFT is tied to the fact they tend to be a one-of-a-kind item, with such rarity driving up their worth.
An NFT allows a buyer to purchase the original product ― even if it can still be listened to or viewed by the public ― which comes with a unique identification code that serves as proof of ownership.
For example, Jack Dorsey, founder and former chief executive of Twitter, sold his first post on the social media platform for more than $2.9 million last year.
Although the post can still be viewed by anyone on Twitter, its ownership has been transferred to another party in the form of an NFT.
Hundreds of millions of dollars worth of NFTs have been sold since the phenomenon was thrust into the spotlight.
The burgeoning marketplace has become increasingly lucrative for collectors and investors.
While it is a symbol of a rapid shift to a digital world, it still follows the familiar principle that an item is only worth what someone is willing to pay for it.
As with any auction, the sale price of an NFT is driven by demand at the time, with no guarantee it will retain the same value if an owner decides to sell it at a later date.