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They are everywhere; the Nyan Cat GIF, Jack’s first tweet, Beeple’s JPEG file! People are not only talking about NFTs but also the large sum of money for which they are being sold. If you are like most humans, you are curious and wondering how to get a piece of the NFT pie.
Well, don’t know about that pie, but this should meet your curiosity and clear any confusion. Before we go any further into what NFTs are, let’s have the name written in full. NFTs mean Non-fungible tokens. But before we talk about the non-fungibles, let’s talk about the fungible.
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The Fungibles
The first time I came across the word ‘fungible’, all I could think of was a fungi-infected object. Don’t be like me, forget about fungi. Fungible means something else.
Fungible refers to the attribute and possibility of interchangeability and being indistinguishable. Something is fungible if you can exchange it for another of its kind and get the same. You can exchange one bitcoin for another or a gold bar for another because they are fungible.
Next, the Non-fungibles
Non-fungible is the opposite of fungible. Non-fungible objects are one of a kind; there are no two alike. There may be copies or fakes, but one original. It can’t be interchanged with something else because there is nothing else like it. An example of a non-fungible object is the portrait painting, Mona Lisa, by Leonardo da Vinci. Other non-fungibles include me, you, my editor... But, while we are non-fungible, we are not tokens.
Let’s talk about non-fungible tokens.
Non-fungible Tokens and How They Work
NFTs are digital tokens, cryptocurrencies, like BTC and ETH. But their specialness lies in much more than their non-fungibility. When creating an NFT on a particular blockchain, say Ethereum, extra information is put in it, making it special and more than a currency. It can be made into anything the creator wants it to be: art, music, or a tweet (Hello Jack).
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While the blockchain registers the copies or downloads of the NFT at different times and places, these do not have the data that set the original apart and backs it up as a part of the Ethereum network, giving it its worth.
Pie?
NFTs play many roles; helping the artist sell their work and earn royalties on works that otherwise might not be considered purchase-worthy and giving buyers the opportunity to not only support their favourite artist and earn bragging rights but also become collectors and ‘hodlers’ of valuable NFTs.
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Ethereum is a leading blockchain for NFT buying and selling, but some other blockchains are on the playing field too.
Whatever you do, remember what was said earlier; while you are non-fungible, you are not a token. Please don’t put yourself up for sale as an NFT.
Fun fact, I wrote this article as a test writeup for a company, I passed this stage but didn't make it past the interview stage. I thought to share this with the community.
I am thinking of creating an NFT.
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