NFT stands for Non-Fungible Token.

Fungible means something can be exchanged or substituted and will hold the same value. It’s interchangeable like the dollar, gold, casino chips, bitcoin, Ethereum or frequent flyer loyalty points.

For example, in exchange for 10-euro cash getting two 5-euro banknotes. Even though they are different, they hold the same total value.

On the contrary, the term non-fungible means it’s an asset that can’t be substituted. It has unique attributes that make it different from something else in the same asset class. Like a painting, a theatre ticket, a house, a video game skin, a trademark. Some of these assets are physical and tangible and others are digital and intangible.

And the term Token refers to a digital certificate stored on a secure distributed database called a blockchain.

NFTs are digital assets that are publicly verifiable intellectual property authenticated on a blockchain.

SO, HOW DO NFTS WORK?

NFTs are mostly part of the Ethereum blockchain. Ethereum is a cryptocurrency, like bitcoin or dogecoin, but its blockchain also supports these NFTs, which store extra information that makes them work differently.

Similar to Bitcoin and other cryptocurrencies, non-fungible tokens rely on the decentralized power of blockchain technology to verify their authenticity. But unlike cryptocurrencies, they’re not interchangeable. You can’t swap an NFT for a car or buying a pizza, because each NFT is attached to a specific digital asset such as a ticket coupon, digital arts, a collection of trading cards.  Every bitcoin has the same value at the same time. Not so with NFTs. In short, think of an NFT as a unique, digital version of a certificate of authenticity, publicly rubber-stamped by the blockchain. Think of Pokémon cards, rare coins or a limited-edition pair of Jordan’s. No two NFTs are the same. NFTs create scarcity among otherwise infinitely available digital assets.

Some Success Stories

• : An artwork “EVERYDAYS: THE FIRST 5000 DAYS” by crypto artist Beeple sold for $69.3 million at storied auction house Christie’s

• On February 19, 2021: The Gif of Nyan Cat – a 2011 meme of a flying pop tart cat – sold for over half a million dollars.
• On February 28, 2021: Musician Grimes sold $6 million worth of digital art as NFTs

We believe the NFT space will continue to grow in the coming years with some popular use cases being: Digital Art, Virtual Land, Gaming, Collectibles, Finance and much more.