NFT stands for non-fungible tokens, non-fungible meaning it is unique and cannot be replaced by something else.
Fungible is derived from the Latin verb fungi, which means to perform. This means it is interchangeable. Non-fungible, on the other hand, means it cannot be exchanged because it is one of a kind or limited.
Thus, NFTs are digital representations of assets and have been likened to digital passports because each token contains a unique, non-transferable identity to distinguish it from other tokens.
Another explanation is that an NFT is a unit for storing digital content, which is bought and sold through a blockchain, which is a type of database.
NFTs, which became so popular in recent years, is a digital representation of physical assets, which may be a piece of art or real estate.
Investopedia describes NFTs as “cryptographic assets on a blockchain with unique identification codes and metadata that distinguish them from each other.”
They are particularly popular in the art world because they connect artists with audiences, simplify transactions, and create new markets.
Dinusha Mendis, in an online article for The Conversation, simplifies it further saying that NFTs are essentially tradeable jpegs or gifs.
Unlike physical collectables, an NFT owner will not be able to display the asset in their home – except on a screen.
NFTs captured the world’s attention in March 2021 when the digital artist Mike Winkelmann, known as Beeple sold an NFT of his digital collage for $69 million at Christie’s, the 255-year old auction house, according to The Verge.
The auction winner, in exchange, got a digital file of Beeple’s work and some rights to present the image.
Note that when you buy an NFT, you don’t completely own it. Think of it as buying a piece of something.
Interested in owning an NFT?
First you have to choose what item you like, whether it’s a painting, music, video game or even just a tweet.
The next step is you need to choose your blockchain such as Ethereum. It follows that you must also have a digital wallet.
Once this is done, you can then choose your marketplace where you can sell your NFT.
One example is OpenSea which, according to the Motley Fool, is usually a good place to start. “It allows you to mint your own NFT, and it’s a leader in NFT sales. The NFT marketplace sold $3.4 billion worth of NFTs in August 2021 alone.”
The market place will guide you into uploading your digital asset and how you want to sell it. There will be corresponding fees of course in the use of the marketplace.
Now, you are ready to sell your first NFT. ###