What is an NFT?
An NFT stands for Non-Fungible Token. Fungible (a word we never use) means that it is replaceable by another identical item.
Some examples of fungible are coins, a can of soda or a lip gloss. If I lend you my lip gloss, and you lose it, and it’s my favorite, you can easily go to the store, get that same lip gloss and give it back to me.
Non- fungible is something that is unique and can’t be replaced with something else. Like a house, or piece of property, the original Mona Lisa, or my phone. If I lend you my phone and you lose it, you can’t just go and replace it with a new one because it has my cover on it. And my photos and my contacts that I didn’t back up to the cloud. It’s uniquely mine.
Tokens are anything that can be digitized. We think of .jpgs or .mp4, or videos. We can also think about this for gaming assets like avatars, AR filters (that includes a social media filter you use), or even a zoom background.
We like to think of NFTs as digital collectibles. Each NFT is one of a kind and once you buy one, you are the sole owner of it. Pretty cool, right?
There are a ton of different applications for them like art, memberships, gaming, perks and rewards. Don’t worry- there will be more details on all this in other videos!