NFTs have taken over the mainstream culture, but what exactly are they? Don’t worry we’ve got you covered.
What is an NFT?
The term NFT stands for ‘non-fungible token’, which more or less means that it is unique and cannot be replaced with something else. To put this into blockchain context – bitcoin is fungible and can be traded for another and you’d have exactly the same thing. However, that isn’t the case with NFTs; a one-of-its-kind trading card cannot be exchanged for the exact same card but can be traded for something different. Still with us? Good.
How do NFTs work?
Most NFTs are part of the Ethereum blockchain. Ethereum is a cryptocurrency, but its blockchain also supports NFTs, which store extra information that makes them work differently from the coin itself. It’s also worth noting that other blockchains implement their own versions of NFTs.
So, what can be an NFT?
Simply put, NFTs can really be anything digital like drawings, music or even your brain downloaded and turned into an AI. But a lot of the current excitement around NFTs is using the tech to sell digital art.
But can it not just be downloaded and then wouldn’t I have one?
Here’s where it gets a bit awkward. Technically, you can copy a digital file as many times as you want and that extends to NFTs as well. But NFTs are designed to give the holder something that cannot be copied – ownership. To put it in physical terms, anyone can buy a Monet print but only one person can own the original. Capeesh?
The digital world is still developing, so stick around for updates. But in the meantime, let us know if you’ll be dabbling in some NFTs yourself.
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