Once you purchase an NFT, everyone will see that the X NFT belongs to the Y wallet - it's set in stone. To put it very bluntly, non-fungible tokens allow you to become the provable owner of a certain digital asset. What is this hype all about, though? Learning what is an NFT doesn’t really explain why you should be interested in the topic, in the first place. All you need to do is take a look at some of the more-recent Twitter trends, or even check out your local news. NFT’s are popular - that’s quite evident. That being said, you will always be able to exchange a single dollar for another dollar - they are fungible! Figuring out what is an NFT, you should understand that the opposite is the case with these tokens - there are no equivalents out there.ĭapps Metaverse Augmented Reality: A Thorough Introduction What’s All the Hype About?
Does nft stand for serial number#
However, I’d urge you to, once again, think about the United States dollar.Įach dollar has a serial number - this is equivalent to the metadata of each crypto coin on the blockchain. I assume that some readers of this article might say - how are coins like Bitcoin not unique?! All transactions are public, and each coin can be traced back, in the same manner how each transaction can be observed by anyone and everyone! Now, obviously, there are other reasons for the values attributed to some NFTs out there, but I think the former point illustrates the idea perfectly. Unlike with cryptocurrencies such as Bitcoin, being completely unique and one-of-a-kind, an NFT crypto is also scarce, and this scarcity comes with a certain price tag. If you’re looking to find out what is an NFT since you saw Beeple’s NFT art being sold for $69 million, chances are that you know what I’m talking about. This is actually one of the main reasons for the values attributed to some non-fungible tokens. Unlike other digital assets, though, there are no “ 1:1” replacements for an NFT - the token is completely unique, and one-of-a-kind. Same as any other crypto assets, NFTs possess their own metadata, and can be distinguished by it on the respective blockchain. Meaning, each different $1 can usually be replaced with another $1, in a 1:1 ratio. Think about it this way: fiat money like the United States dollar is fungible. This uniqueness relates to the one-of-a-kind properties assumed by each individual NFT. The term NFTs itself stands for “ non-fungible tokens”. Non-fungibility is a fancy way of saying “ uniqueness”. While it may sound difficult, it’s actually pretty simple to understand.
Now, in order to discuss what is NFT, the very first thing that we need to get out of the way is the term “ non-fungibility”. Once any of the aforementioned assets ( rather, their metadata) is uploaded onto the blockchain, they become NFTs. They can be anything from digital artwork, all the way to a song from Deadmau5 or a homemade video of a cat falling off the table. NFTs - non-fungible tokens - are cryptocurrency-related assets that are completely unique in their nature. Well, I'll present you with the watered-down description, first, and then we'll be able to get into some more detail.
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