What Is NFT? - Non Fungible Token

Abstract

This video on “What is NFT” covers all the important concepts of NFTs like What are NFTs?, What are Non-Fungible Tokens, how do NFTs work, how are NFTs different from other cryptocurrencies working in the same Blockchain Technology, how NFT became so popular and what future NFTs hold for the world’s economic system.

NFT stands for Non Fungible Token.

Fungible means something is able to be exchanged or substituted and will hold the same value. It’s interchangeable like the dollar, gold, casino chips, bitcoin, ethereum or frequent flyer loyalty points.

If I lend you 10 dollars cash and you return to me two 5 dollar bank notes, I’m fine with that because even though they are different, they hold the same total value.

So non-fungile obviously means it’s an asset that can’t be substituted. It has unique attributes that makes it different from something else in the same asset class. Like a painting, a theatre ticket, a house, a video game skin, a trademark or a CryptoKitty which was the first real use case to take off on the Ethereum blockchain in 2017.

Some of these assets are physical and tangible and others are digital and intangible.

So NFTs are non-fungible tokens. ‘Token’ refers to a digital certificate stored on a secure distributed database called a blockchain.

NFTs are digital assets. Publicly verifiable intellectual property authenticated on a blockchain.

A popular place to currently browse a variety of NFTs is on http://OpenSea.io

It’s an exciting space, I believe the NFT space will continue to grow in the coming years with some popular use cases being: Digital Art, Virtual Land, Gaming, Collectibles, Finance and much more.

I thought this was worth explaining because I think we’ll be talking a lot more about this in the coming years.

Stop Thinking, Just Do!