🎨NFTs Explained

NFTs stands for non-fungible tokens. NFTs are best understood as unique digital assets, and they exist in a variety of industries from digital art and virtual real estate to collectibles, gaming and more. Basically, any type of media can be minted or tokenized and turned into an NFT: art, trading cards, memes, gifs, video clips, audio clips, tweets, this article — anything. Once tokenized, these assets can be bought, sold and traded using cryptocurrency.

FUNGIBLE VS. NON-FUNGIBLE

Fungibility basically means interchangeable; any two units that can be evenly exchanged are fungible. For instance, a $100 bill is fungible because two separate $100 bills hold the exact same value, and so for all intents and purposes, they are the same. On the other hand, let’s think about two Lebron James rookie cards. They may present the same to the outside world, but they are definitely not interchangeable. Even if they look almost identical, there are distinguishing factors that tell them apart — like their centring, the colouring and the sharpness of their corners.

An NFT is a digital certificate representing a one-of-a-kind asset, just like a one-of-a-kind rookie card. Even if two assets appear identical, the metadata on the non-fungible token provides a stamp of authenticity that allows us to tell them apart