And why do they have value?NFT stands for “Non-Fungible Token,” which is, of course, gibberish.Fungible sounds a lot like fungus but has nothing to do with mushrooms.Being “fungible” is characteristic of good money, that all $20 bills have the same value, that they store the same amount of wealth for a given time & location. Does not matter who holds the $20 bill or the history of that $20 bill.This implies that “non-fungible” tokens can have different values…Where a token is a tradable digital asset whose ownership is managed by a blockchain. One can assume that the ownership of most NFT’s is managed by the Ethereum blockchain.OK, but how can an infinitely copy-able digital file, such as a digital image, have value if the supply is limitless?Enter the Hash Function.Once again, having nothing to do with a hallucinatory substance. Perhaps related to the random appearance of corned beef hash.Consider the following mathematical function, where a binary data file is the input:No matter the length of the input data file, the length of the output is always N bits.Given just the N output bits, it is impossible to extract any information about the input data file.While two different input data files may produce the same N output bits, there will be no discernible relationship between the two input data files.The probability of two random input data files producing the same N output bits should be one out of 2 to the N power.While the same input data file will always produce the same N output bits, any change to an input data file, no matter how small, will not only produce a different output, but it will also be very different and unpredictable output.While there are many available hash functions, I will use the MD5 Hash function, which outputs a 32-byte…