Introducing NFT: What It Is and, Why You Should Care | NFT Explained 😼 #nft #nfts
Non-Fungible Tokens (NFTs) are fast becoming a real source of innovation in the crypto space.
But, what exactly is an NFT, and why is it significant? If you’re reading this post, chances are you already know a little bit about tokens.
You probably know that they can be used to represent digital assets such as stocks, loyalty points, gold coins etc. and that they can be stored in special digital wallets called tokens wallets.
However, if you’ve read any further than that you probably don’t yet fully understand what non-fungible tokens are or why they matter so much. Let us explain...
What is an NFT?
NFT stands for Non-Fungible Token. These are tokens whose individual units are unique. In other words, each token is unique, and therefore cannot be substituted by another token. For example, if you own a token that represents a particular painting, that token can only represent that specific painting.
It cannot be used as a substitute for another painting. So how does this differ from fungible tokens? Funky fact: in the early days of the internet, people used to refer to normal tokens as fungible tokens.
But then, as the internet evolved, the meaning of that word changed. Now, it refers to tokens which are interchangeable.
The other type of token is a non-fungible token. NFTs are what we used to call digital commodities. Things like popcorn or crude oil. They’re products that come in different varieties.
