NFTs

NFT stands for Non-Fungible Token.

What is Non-Fungible?

This is not a new term, but for those unfamiliar with the concept of fungibility in economics this might be something foreign. More people have heard this term lately as it becomes more commonplace with the rise of NFTs. Maybe you’ve heard the term yourself, but could you define what Non-Fungible means?

Lets keep it simple: 

Fungible means that something is able to be replaced with an identical item of the same value. For example, a dollar bill is worth a dollar and is mutually interchangeable.

Non-Fungible means that something is uniquely identified and can’t be copied or replaced. An example would be a flight ticket, since there cannot be another ticket with that specific identifying data. Same with a car, each has its own VIN number to identify that specific vehicle. Even though they might look similar on the outside, cars are non-fungible.

In the case of Non-Fungible Tokens this means that something with uniquely identifiable data is stored in a blockchain to certify authenticity or ownership of that thing. In the case of NFTs, those “things” are usually images, video or audio of some sort.