NFTs are “Non-Fungible Tokens“. There are two words here. “Tokens”. And “non-fungible”.
What are “tokens”?
Tokens are digital containers. Email is a digital container. Tokens are like Email. You can send tokens like you can send Email. To anyone. Anywhere. Any time. (Almost) for free.
What is in a token? Well, what’s in an Email? A token can contain a song–just like an Email can contain an audio file as an attachment. A token can contain a video–just like an Email attachment. A token can contain anything Email can contain.
What is “non-fungible”?
Non-fungible means non-interchangeable. Non-fungible means non-replaceable. Non-fungible means non-substitutable.
Something non-fungible is something unique. One-of-a-kind. You can buy and sell something that is one-of-a-kind. Artworks are often non-fungible.
Non-fungible + Tokens = Non-Fungible Token (“NFT”)
A NFT is “something unique” inside a “digital container”. Similar to an email. But anything digital is easy to copy & paste. How can tokens be unique? They are digital. They can be copied. Yes–but it does not matter.
A NFT is stored on a blockchain. Blockchain technology makes it easy to separate the original thing from its copies. An NFT is digital, so copying it is easy. Just copy and paste. But the copies do not matter.
Physical artworks are unique. Copying is difficult. But differentiating the original from the copy is difficult. With NFTs, it is the opposite. Copying is easy. But differentiating the original from the copy is easy. And that is the magic.
So what are Non-Fungible Tokens (“NFTs”)?
It is something digital. Something unique. Something that can be copied. Something where its copies do not matter. Because anyone can easily tell what the original is.
In digital art, NFTs are digital artworks. Just like paintings are physical artworks. But NFTs are better. Because everyone knows the original. Always. Easily. Cheaply.
It is transparent. Nobody even asks, “Is this original?” Everybody asks, “What do you create?”
NFTs are jargon. But they will be everywhere. Sign up to our newsletter. It is at the bottom. We will take you to the top of your digital art game. One word at a time.