What is an NFT
Published: July 10, 2021

What is an NFT
What is an NFT

There's a new form of tech making waves and leaving loads of people confused. Is it a new cryptocurrency? Not quite. We're talking about NFT's of course, the newest buzzword in tech. NFT stands for 'non-fungible token' or in simpler terms a one-of-a-kind token.

To make it simpler, we're going to compare NFT's to trading cards. Each card is different, making it non-fungible or one of a kind, unlike something fungible like bitcoin. When you trade bitcoin for bitcoin you'll end up with the same thing. Swap trading cards however and you'll end up with something totally new.

So what is on these trading cards? Literally anything! An NFT can be drawings, music, video clips, etc. For example, Jack Dorsey the founder of Twitter sold his first tweet as an NFT. This is like he put his tweet onto a limited number of trading cards and sold them with a note of authenticity. These trading cards (NFT's) can be held onto like a rare piece of art or they can be sold later for a profit.

Art is one of the biggest markets currently for NFT's. Buying a limited art piece as an NFT is a little bit like buying an original painting. Sure, you can buy a print but you want the bragging rights that come with owning the real thing.

But for most of us, paying hundreds of thousands for digital artwork isn't something we can afford. So how can you get involved with NFT's? Going back to our trading card metaphor, the NBA created basketball NFT's where you can buy NFT's of plays, players, highlights, and more exactly like basketball cards of yore. Anyone can go visit NBA Top Shop and pick up a pack and see what they get, exactly like buying a pack of trading cards.

There's a lot more tech behind NFT's, like the blockchain network it uses but we hope this clears up the basic concept around what NFT's really are!



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