What are NFTs?

NFT stands for Non Fungible Token. That doesn't really help much does it?

The dictionary definition of Fungible gets us a bit closer:

Fungible

adjective

LAW

  1. (of goods contracted for without an individual specimen being specified) replaceable by another identical item; mutually interchangeable.

    "it is by no means the world's only fungible commodity"

So something that is fungible means it can be replaced or exchanged for an identical item. a 100 dollar bill is fungible. If you it to me I can give you back another, identical apart from the serial number. You have a different bill in you hand but it fulfills exactly the same function, has the same value and for all intents and purposes is identical.

Something non fungible does not have this property. 

So we can think of something being non fungible as having been assigned some degree of rarity.

A non fungible asset is something like a painting, a car or even a house.

an NFT is a unit of data stored on a blockchain digital ledger. Each non-fungible token acts as a certificate of authenticity. It shows that a digital asset is unique and not interchangeable. An NFT can never be changed, never be adjusted, and never be stolen, thanks to it's eternal and immutable presence on the blockchain.

So in a nutshell. An NFT is a digital proof of ownership of whatever has been attached to the digital token. It could be a piece of Art such as the piece sold by Artist Beeple for $69 million......or it could be a ticket to a show that you paid $50 for. It could even be your medical records.

Use cases for NFTs are huge and whether or not the current interest in NFT art continues it's meteoric rise. You can be sure that NFTs are here to stay and will creep into many aspects of our lives in the years to come.

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