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Like many new terms flying around today, NFT is popping up on a regular basis and it’s usually in conjunction with large amounts of money. But what exactly is it? It may seem complex on the surface, but it’s really pretty simple. NFT stand for non-fungible token.
Wait, what? What is non-fungible? non-fungible means that it is a unique digital identifier that can’t be copied, replaced, or even divided.
This digital identifier is stored on a blockchain. Okay, so what’s a blockchain? I’m glad you asked! A blockchain is like a digital ledger that stores all of the information about the NFT so that it can be authenticated. This also allows it to be sold or traded with all of its information attached. It can provide a digital Certificate of Authenticity as well as Proof of Ownership.
NFT types can differ due to the data associated with the files. This means an NFT can be photos, videos, and audio files. Because each token is digitally unique and identifiable, NFTs differ from Bitcoin.