I’m going to explain what is an NFT in a way that hopefully your grandma could understand. In my experience, there are loads of sites explaining the new NFT world, but in my opinion most are far too techie, geeky, nerdy or you need to be an IT expert to understand it.
NFT stands for Non Fungible Token. So. what is a fungible and non fungible? What does that mean? Firstly, Fungible is not a new word. Although for most of us its new, the word fungible has been around for ages.
Fungible: One good or asset can be interchanged with other goods or assets of the same type Some examples. £££ Pound Notes, $$$ Dollar Bills, Bitcoin, Shares, can all be exchanged for other notes, shares or Bitcoins. If you had a £10 note you can exchange it for 2 x £5 notes and the value is the same.
Goods that are Non fungible are not interchangeable. Precious stones, land, property, second hand cars, collectors cards, are all examples of unique items and therefore are non fungible.
A non fungible token is a piece of data stored on a public ledger like the Ethereum Blockchain that certifies that the digital asset is unique and therefore not interchangeable. NFT’s can then be associated with digital files to confirm authenticity and proof of ownership.
So to wrap up.. NFT’s are unique things (images, audio, video) in the new digital world that can be bought and sold. The Non Fungible Token can be viewed as the public and verifiable proof of ownership for those things.
What does this mean? It means that a whole new opportunity has just opened up. The opportunity to sell all sorts of digital items (audio, video, images) Thats the key thing. You could sell your art, photos, music, videos, tweets, social media posts and because there is proof of ownership, each sale could give those people admittance to an event, entry to an online club. You really need to think out of the box.