These days, everyone is talking about Web3, Cryptocurrency NTFs and you might have wondered about what is all of that. In this article I will be talking about what an NFT is.

What is an NFT?

The full form of NFT is Non Fungible Token. So let's break it down into Non Fungible and Token.

So what does Non Fungible mean? Fungible means something that can be replaced. Non Fungible means something that can’t be replaced, it’s unique, something about it is different from others and there is only 1 of it in number. And the word token is pretty self explanatory, it is something that can be exchanged for another thing of value.

To understand NFTs better, let's take an example situation. For example if I purchase a green coffee mug for $15 USD, there are millions of coffee mugs that look the exact same when compared to the mug I bought and also cost $15 USD. But, let’s say as time passes, I grow an attachment for the mug, then that mug becomes unique, I have memories and feelings and attachment to that mug, if I paid $15 dollars and bought another one of that mug, it wouldn’t be THAT mug, it wouldn’t be the mug I had attachment to. NFTs are like fingerprints, they are unique. And no fingerprints cannot be sold as NFTs!

So if we join it all together, Non Fungible Tokens are basically unique tokens that you own and can be exchanged for another thing of value. NFTs exist only 1 in number and thus they are something only one person can own because it is unique and only one in number.

Real Life Examples

You might know Jack Dorsey who is the CEO and Co-Founder of Twitter and was the first person to ever Tweet on the platform. This means that he owns the tweet. It can not be replaced or duplicated which makes it unique and non-fungible. The Tweet was sold by Jack Dorsey for $2.9 Million USD. A rainbow cat gif was sold for $690,000. These were real life examples of how NFTs work.

Other Details

Now you might be wondering, people sell NFTs but where do they sell their valuable NFTs? Now the answer to your question is, there are many marketplaces around NFTs. There are many options for both buyers and sellers. These marketplaces include OpenSea, Nifty Gateway, Rarible, Grimes’ choice and many more. These marketplaces allow both buyers to buy NFTs and sellers to sell NFTs.

People also get confused if NFT art and physical art work the same way. Physically, a person may or may not make multiple copies of the art work done but NFT art cannot exist in copies more than one. The artwork is unique and hence there is only one copy of it and only one person can own it, one NFT art may look a little bit similar to other NFT art but they will never be the same.

People often wonder why other people are buying these NFTs, and the answer to that is because NFTs can be used as profile photos on some platforms, it gives them the pride of owning the unique thing, and many more reasons.

Conclusion

So in conclusion, The full form of NFT is Non Fungible Token, which is basically a thing that is unique and only 1 in the world that cannot be duplicated or replaced, it can be exchanged for other things of value. There are many marketplaces where people can do both, sell and buy NFTs. So I hope you learnt something from this article about NFTs and there is a lot of research you can do on this topic so don’t just read this article, go on and do your research and learn more.