When I was assigned to write about NFTs, all I could think about was Pete Davidson’s parody song explaining what’s an NFT. If you don’t know what I am talking about, then you are missing a lot. You can watch the video here. Anyway, in this piece, we will dig deeper to understand the world of NFTs. Are you ready? Yup, so am I.
A picture of your Golden Retriever on the so-called internet can get you millions of dollars. Seems unrealistic, right? Well, it is not magic. It is called NFTs- Non-fungible tokens. Let’s break down the abbreviation. “Non-fungible” means that it is unique and can’t be replaced. It is one-of-a-kind, just like paintings. There is only one original Mona Lisa in the world. Although many tried to imitate Da Vinci’s masterpiece, yet they are not authentic. So, when you buy an NFT, you are the only one in the world who has this unique version. On the other hand, Bitcoin and other cryptocurrencies are fungible (aka interchangeable) as they can be traded or exchanged for one another.
Moving on to the second part of the abbreviation, “Token.” NFTs are digital tokens or assets that represent the ownership of a unique digital object, including art, videos, or music. The digital content could be a cute picture of your dog or a Gucci ghost (the latter exists btw). The modern-day collectibles are bought and sold online. One of the most popular NFTs marketplaces is OpenSea, which is ranked first in the NFTs league table.
NFT seems like a futuristic concept. Yet, how does it work? The digital asset is encoded with the same technology as cryptocurrency. NFTs create a blockchain-based digital certificate for the collectible to prove authenticity. It can store unique data, which makes it difficult to alter the NFT.
To wrap it up, NFTs are unique tokens that use blockchain technology and can’t be replicated. They represent proof of ownership of any digital content. If you need more deets, check out this video.