What is an NFT?

I'm sure you have heard about NFT's by now. Someone you know is either selling or buying them. In this blog, we'll discuss what an NFT is and where you can get one.

“Everydays — The First 5000 Days,” - Beeple (sold for $69.3 million)

What does NFT stand for?

NFT stands for non-fungible token.

What does non-fungible mean?

A fungible item is an item that can be interchanged with another of the same kind/value. An example of something fungible is money. Money is fungible as notes and coins of the same kind are worth the same amount (eg. $1 =$1 or $10 = 10 x $1).

Non-fungible items are not worth the same as others of the same kind due to their characteristics. Unique collector's items are non-fungible as they do not have the same characteristics of another item similar in nature eg. A comic book (fungible) vs a collectors edition comic book (non-fungible). If a house was traded for another house the traders would either receive a house in a better or worse condition. For this reason houses and cars are non-fungible. NFT's are non-fungible as the traders would not receive the same identical NFT back - It would either be better / worse in value or in appearance. NFT's are essentially digital collectibles.

NFT's are therefore digital assets like a car, house or, collectible items would be. They are non-fungible tokens that are stored on the blockchain.

Where can you buy an NFT?

NFT's are available through sites such as opensea.io , crypto.com, Nifty Gateway, and Rareable - just to name a few.

What is the blockchain?