What is an NFT?

NFT stands for non-fungible token. Simple enough, but let’s look into the meaning of those two words: fungible and token.

An item being fungible means it’s replicable and easily exchangeable for the same total value. Things that are fungible are currencies like the dollar, gold, or even bitcoin. Non-fungible items are like a house, unique artwork, or individual people. These items are not easily exchangeable and in most cases can’t be directly replicated.

CryptoKitties. One of the original NFTs created and sold using the ethereum blockchain.

A token in the cryptocurrency world represents a digital asset on a blockchain with a unique verifiable code. In this way, a non-fungible token is a digital representation of an asset that can’t be replicated.

A buyer paid $69 million in cryptocurrency, with fees, for “Everydays,” a collage of digital images by the artist Beeple authenticated with a unique bit of code. Credit…Christie’s Images Ltd. New York Times.

Lately, NFTs have had renewed vigor in the digital art world. Using NFTs, digital artists have found a new method to authenticate their artwork. Prior to this, a person on the internet would have simply copied and downloaded the digital artwork’s image. Now by assigning the original artwork to an NFT, its underlying code can not be copied. This certifies its authenticity.