NFTs are all over the news these days. They’re super hot and popular, but, to many, quite confusing. So, my goal in this blog is to explain what an NFT is for dummies. A beginner’s guide, if you will — in a way that my mom could even understand (and that’s saying something).
Allow me, first, a moment of preamble:
I’m not an expert in investing or crypto currency. And this blog isn’t meant to be taken as investment advice nor as any kind of recommendation.
Let’s start with what NFT stands for.
Non-fungible token.
Has that confused you even more? Like, what does that even freaking mean? Well, let’s break down those words…
Fungible.
Something that is fungible is basically something that can be replaced by another item.
So, it’s one of a kind — there’s only one that can exist or one original copy that can exist (i.e., non-replaceable).
Token.
Noun. Basically anything can be a token:
- music
- digital art
- tickets to a concert
Now, how does this work in the world of crypto currency?
Long story short: NFTs are digital art work. I think that’s the best way to think about it.
Picture it: How do wealthy affluent people in the real world show off their wealth?
- one of a kind watches
- fancy jewelry
- statues they put in their house’s entry way
- artwork they display in their home
Flashing off their wealth to others through (some kind of) art and/or material possession.
Well, as we all know, the world is becoming increasingly digital.
- Meta / Facebook
- Virtual reality glasses
- Everything bluetooth
But how would one show off their wealth in that space?
Through through these virtual NFTs!
Now, you might be thinking,
“Couldn’t I just screenshot or copy and paste someone’s super expensive NFT and say that I own it?”
Sure, you could absolutely take a screenshot of the Mona Lisa, for example, on Google Images and hang it up in your home and pretend that you own it. But there’s only one real Mona Lisa, and it’s priceless.
NFTs are the same way.
It’s just digital artwork — and I’m using artwork because I think that’s the easiest way to conceptualize it. As mentioned, tokens can be a lot of different things and come in many different forms.
How does the monetary side of things work, though? For THAT and so much more, like:
- How NFTs can be purchased
- What is a blockchain
- Why NFTs are (probably) here to stay
- Perks and benefits added to them
Then, check out this episode of Build Your Tribe:
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