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#33 – What is an NFT in 1 Min (08/21)

Yesterday I bought my first NFT and told some friends. The first question was: “What is an NFT?” Let’s dive into it.

NFT stands for Non-Fungible Token. Mhm… That does not make it clearer.

Maybe it’s easer to explain first what a Fungible Token is. It is a token, like Bitcoin, which can be traded for another Bitcoin. You will have exactly the same thing. I know you exchanged Bitcoing but in the end it does not matter, you have 1 BTC and the other person gets 1 BTC.

But NFTs can’t be replaced. It’s unique. Think back to your youth, do you remember trading cards? Like Pokemon, Yuh-Gi-Oh, NBA or anything similar? There’s only a certain amount of them and once you trade one card with another, it’s gone. Ownership changed and someone else ownes the card. Same for NFTs. It’s a mechanism to give ownership of digital arts to the creators/artists.

Most NFTs are part of the Ethereum blockchain, meaning that transactions is being verified through a smart contract, which means: no middle man. (Like eBay, Banks etc.)

So that’s basically the simplest explanation I came up with. If you want to dig deeper, there’s this amazing post I recently found online. It’s written in a very funny way. Love it.

Say Hi to my crypto cat Dieter Spicytot. 😄

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