What Is An NFT — The Quick Answer
Breakdown the acronym N-F-T for me
Sure, NFT stands for non-fungible token. Those three words all precede the internet and shouldn’t scare you in the least bit.
‘Non’ defines the opposite of that which it precedes.
Oxford defines fun-gi-ble as being ‘able to replace or be replaced by another identical item; mutually interchangeable’. Hence if we add ‘non’ prior to ‘fungible’ we get the opposite of being able to be replaced by another identical item. What is the opposite? Unique, irreplaceable.
Put non and fungible together and non-fungible means unique, not duplicated.
You’ll see a U.S. dollar frequently mentioned as fungible, the opposite of non-fungible. This is because if I give you a dollar bill, I do not expect that exact dollar bill back when you repay me. You can give me any dollar bill you have. That is because all dollars are equal and interchangeable.
Oxford defines to-ken as ‘a thing serving as a visible or tangible representation of a fact, quality, feeling, etc.’ How do you know that you have ownership to something that you cannot touch and hold? Because the token points everyone in the world to the blockchain where your ownership is recorded.
Put these three words together and what you have is the 21st century way of buying, selling, collecting, and owning— both physical items in real life as well as non-physical items like a digital picture.
All of this is possible through ‘code’ that can sometimes be worth hundreds of thousands if not millions of dollars.
More On NFTs
Before embarking on your NFT journey you must learn:
- how do I set up a wallet to house my NFTs
- will I be using cryptocurrency to buy NFTs or only buy NFTs that allow you to use a credit card or direct transfer from your bank account
- what is the difference between an open and closed marketplace
- am I buying an NFT that correlates with utility, scarcity, or affinity
Where May I Learn More About NFTs
Please don’t feel silly if you are still having a hard time understanding NFTs — they are hard to understand in the beginning! Getting into NFTs can be tricky and myself and the entire team at RadishNFT are here to help. Join our Discord here and become part of our community!
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-The Golden Radish
Disclaimer: We are not financial advisors and the information here is not financial advice.