NFTs… Lost already?
Whether you’ve heard the term NFT being thrown around or have no idea what the letters N-F-T mean, I’m going to break it down to its absolute simplest form.
NFT stands for Non-Fungible Token.
Non-Fungible is non-replaceable which means it is unique. Token refers to digital content, something that is not physical, that cannot be held in your hands. Thanks to something called the blockchain (don’t panic, it’s explained below) all transactions are recorded so the uniqueness of each NFT/token is guaranteed. This is why they’re so valuable — there’s only one of every single NFT created.
The blockchain is new technology that allows transactions to be recorded without relying on an external source.
Traditionally, for example, if you wished to send money from one bank to another, those two banks would talk to each other and ‘approve’ the sending and receiving of the transaction. This is why traditional financial transactions can take FOREVER to receive money. It is also why fraud and theft at traditional financial institutions are high — if you can’t track it, how do you find it?
The easiest way to understand the blockchain is to see it as a ledger that records every single transaction made, tracking both the buyer and seller.
Still confused? In my experience as a visual learner the best way to become more comfortable in the NFT space is to watch YouTube videos. Start with ‘What is an NFT’ below and go from there. If it doesn’t make sense now, it will!
Or join our discussion and share your thoughts and questions about this and many other subjects with live people in the RadishNFT community here https://discord.gg/a36895U8Gp.
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- Lady J at RadishNFT
Disclaimer: We are not financial advisors and the information here is not financial advice.
