NBA introduces Michael Jordan Trophy. Details here

The video sequence is an "NFT" -- a Non-Fungible Token -- a virtual object whose identity, authenticity and traceability are theoretically indisputable and tamper-proof, thanks to the same "blockchain" technology used to ensure the security of cryptocurrencies like the hugely popular bitcoin. Launched in early October by Canadian firm Dapper Labs in partnership with the National Basketball Association, Top Shot allows customers to buy and sell these short video clips -- called "moments" -- at prices that vary depending on demand and rarity.

Dapper Labs selects and sells the clips, in numbers varying from one single copy to hundreds of identical "moments." Once the sale is recorded on the platform, clips can change hands, from one collector to another, an unlimited number of times. Dapper Labs takes a small commission from each sale, and a percentage is shared with the NBA and the players association. After a slow start, Top Shot's business has exploded since January, generating more than $200 million in transactions since the start of the year, according to a Dapper Labs spokeswoman.

By Wednesday, Top Shot was approaching its first 100,000 buyers, she added. The Momentranks website, which says it provides "accurate, real-time moment valuations," puts the current value of the market at $1.8 billion. Paradoxically, most of the video clips being sold can be viewed for free elsewhere on the internet, primarily on YouTube. "I totally understand the initial reaction of 'I don't get it' or 'This seems stupid,'" Jonathan Bales, who spent $35,000 for one "moment," wrote on his Lucky Maverick blog.

"But guess what? There's a whole generation of young, smart people who've grown up in a fundamentally different way from me and you, so whether or not we 'get' the future is irrelevant to how it will transpire." Steve Poland, creator of the Mighty Minted site, recalled his own initial reaction. "I signed up for an account, and then just instantly, it just clicked, it was like, this is the future. And this is now. And this is what collectibles are going to become in the future."