NFT stands for Non-Fungible Token. Every NFT represents the ownership of a singular piece of digital property as a token. These tokens exist on and are secured by a blockchain in order to be resilient towards theft or copy attempts.
…Okay, I admit, that is likely to be loads to digest. Let’s break this down Cryptocurrency for Novices style.
A blockchain is a distributed public ledger that records verified information across a network of computers around the world. Since they are verifiable, decentralized records, blockchains are incredibly tough to tamper with. When an entry is verified onto a blockchain it’s basically immutable from then on.
Fungibility is the ability for goods or assets of the identical type and equal worth to be traded or exchanged.
While there are highly fungible cryptos like Bitcoin (meaning each Bitcoin shares the exact same properties as any other Bitcoin and may therefore be traded 1 for 1), there aren’t any two NFTs that are precise equals of another. Even when 100% of one NFTs’ contents are copied into one other it will never be original.
So while anybody can copy some image from off the internet, nobody can ever make a replica of or steal an authentic NFT thanks to blockchain technology. Therefore, the ‘Non-Fungible’ part of the name.
The whole NFT market is kind of like comparing apples to apples — however imagine we’re evaluating granny smiths to honeycrisps, or fuji apples vs galas. Oh, and we only have 100 apples. Many will be related, but no will have the exact same weight, shape, coloration, taste, amount of seeds, and so on. Even when we compared one granny smith to another.
Creating, or reasonably, minting NFTs is fairly straightforward. Once you’ve made the artwork you need to turn into an NFT, select a blockchain that helps NFTs. The most popular is presently Ethereum.
By the way, your NFT is usually a picture, painting, image, gif, video, music, meme, or really any digital piece you might have intellectual property rights to, so get inventive!
The NFT minting process requires a crypto funding upfront to add to the blockchain, so that you’ll need to make a digital wallet with a purpose to switch crypto in and out. You’ll also gather your earnings via this wallet when you sell your rockstar NFT!
NFTs don’t have to be super expensive though. The common price for an NFT varies from marketplace to marketplace, however most run on Ethereum’s blockchain. On ETH, it costs a minimum of about 0.6ETH or $250. So most projects end up within the $250-$one thousand range. That’s much more palatable, right?
So what have we learned? In brief, Non-Fungible Tokens symbolize unique pieces of digital property which might be secured by a blockchain. They draw worth from affiliation to an artist, the scarce communities they reside in, as well as the creative qualities they may contain.
These pieces of digital property will be just about anything you want them to be, so long as you’ve got the rights to the creation. Plus, they seem to be a cornerstone technology for the digital future fast approaching.
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