What is an NFT?

4 min readAug 2, 2022

The recent boom in NFTs sales has generated increased visibility, curiosity, and scrutiny as creators and investors alike dabble in the emerging technology. According to Business Insider, NFT sales in the last 12 months have generated $29 billion dollars. Whether you like them, hate them, or have no clue what an NFT is, they are creating opportunities and making money for people RIGHT NOW. Brands like Adidas, Nike, Taco Bell, Tiffany’s, Nickelodeon, And the NBA have launched collections. Celebrities like Paris Hilton, Neymar Jr, Mark Cuban, Shaquile O’Neal, Ozzy Osborne, Snoop Dogg, Madonna, and Reese Witherspoon are in the market as collectors and creators.

So you’re here to learn about NFTs! Here’s a brief take on them; I’ll include links throughout so you can explore more information and resources. The metaverse is nascent, new and still evolving, so there are little (if any) experts in the field. It’s a place of risks and adventure. And as such, here’s a Note: It’s always smart to do your own research. I am not a financial advisor, just a Banano version of Anakin Skywalker... And with that, lets jump into the world of NFTs — You could find your new favorite artist, or heck, be someone’s new favorite artist (perhaps even blaze a new trail doing some cool shit no one has even thought about or considered yet). There are boundless opportunities...

An NFT [Non-fungible token] is a digital asset that is provably unique

Let’s break it down

Digital Asset

Could be any number of things; a photograph, in-game item, song, video, username, deed to a house, medical records, or concert ticket. The sky’s the limit, new use cases are still emerging.

Provable

Due to blockchain technology we can “prove” that you or I or someone else owns an NFT. Take this image of Lazy Lion #1542 for example…

This is a copy of the original image. I just “took” it by right-click saving and then pasting it here. So is this image an NFT? NOPE. An NFT has information that corresponds directly to a blockchain (or the blockchain acts as a signature that points to the picture), think of it as an autograph, custom stamp, or brand label.

Anyone can track the complete history of an NFT; when it was made, who has bought/sold it and where it is at this very moment. Owning a “Lazy Lion” NFT grants the holder special benefits, access, rights, and additional features (AKA ‘Utility’), but only to the person that owns the provable original.

Unique

lets talk about the F in NFT. “Fungible” items are all the same. You can exchange one with another with no problem because they aren’t unique, samey same, think of money. For example -

$10 Dollars = $10 Dollars
An ounce of gold can be exchanged for another ounce of gold
1 bitcoin can be switched for any other bitcoin

NFTs are “non-fungible” in the sense that they have unique identifiers. When someone makes an NFT, they can make 1 unique copy (like Leonardo did with the Mona Lisa) or a series of copies like they did with Pokemon cards, Bratz Dolls, and 1963 Ferrari GTOs. It’s up to the creator; and once it’s been made (or sold/transferred) and confirmed on the blockchain, it CAN’T be taken away.

So there we are, a quick and simple breakdown on what an NFT is. Thanks for reading! Just like ogres (and onions) NFTs have layers. The chat continues in the comments or find me on Twitter @Champ Rockwell

Here’s some links for further reading, This article (and links) will be updated regularly. Cheers!