NFT - Non-Fungible Token - Explained

April 15th 2020 - 8:00 PM EST - by:@officialchaos Follow

NFT = Non-Fungible Token: Non-fungible tokens or NFTs are cryptographic assets on the blockchain with unique identification codes and metadata that distinguish them from each other.
Basically, it is a digital certificate of ownership and authenticity that says you are the sole possessor of an original digital object like an image, Video, Tweet, 3D object, Music or any piece of digital art or a tangible item like a collectible, piece of property etc… pretty much anything you can think of.
What makes an NFT unique is the digital asset tied to the token that's uploaded to a marketplace, which creates the NFT to be sold. That NFT can then be sold or auctioned to someone else.

• Non-Fungible means that it is a unique, one-of-a-kind item and cannot be replaced. It cannot be traded or exchanged at equivalency.

• Fungible means it is can be swapped/traded with another that is identical… ie: A dollar can be trade for another dollar, it is not the same dollar, but is still the same value etc… Same goes for a bag of rice, a bitcoin, oil, wheat, lumber etc… it is essentially interchangeable. Fungible tokens like cryptocurrencies, which are identical to each other and, therefore, can be used as a medium for commercial transactions.

Bit of History: In May of 2014, Anil Dash (CEO of Glitch) who was paired up with digital artist Kevin McCoy, had this to say. “This was around the peak of Tumblr culture, when a raucous, wildly inspiring community of millions of artists and fans was sharing images and videos completely devoid of attribution, compensation, or context.” “By the wee hours of the night, McCoy and I had hacked together a first version of a blockchain-backed means of asserting ownership over an original digital work. Exhausted and a little loopy, we gave our creation an ironic name: monetized graphics.”

Important Points:
• NFTs are unique cryptographic tokens that exist on a blockchain and cannot be replicated.
• NFTs can be used to represent real-world items like artwork and real-estate.
• "Tokenizing" these real-world tangible assets allows them to be bought, sold, and traded more efficiently while reducing the probability of fraud and enabling tracking of the history of owners, prices etc… that cannot be tampered with or altered.
• NFTs can also be used to represent people’s identities, property rights, and more.
• Although digital files can easily be copied and reproduced, you can prove you're the owner of the original with a non-fungible token because the NFT is recorded on the blockchain, a digital, decentralized ledger that also supports cryptocurrencies like Bitcoin and Ethereum.

If you're looking to get started, OpenSea is the best marketplace, in my opinion, they utilize a system called Lazy Minting (so items are not Minted until the actual sale) this will save you boat loads on paying to mint up front and no energy is wasted on unsold items, so great for your wallet and the environment. If you need help, have questions or just don't know where to begin, feel free to join us on the Official OpenSea Discord. I am always there helping people and answering questions, so look for me @OfficialChaos