NFT stands for non-fungible token.
An NFT is a token that cannot be replicated or replaced. And they’re not interchangeable. Because you connect them to digital assets.
NFTs are used to create digital scarcity. Let’s say I’m a digital artist. And I have my original artwork. I can create an NFT to verify that I’m the original owner of this image and that information will be stored on the blockchain. Which means it cannot be changed.
This solves some big problems on the internet because theft and plagiarism have always been issues. It’s very easy for someone to download your image and post it as their own.
With NFTs, you can verify your ownership of your masterpiece.
This is different from other cryptocurrencies. If you have a Bitcoin and I have a Bitcoin, we can trade them, and they’re both equally valuable. But my NFT might be this masterpiece right here, and your NFT might be the Mona Lisa.
Starting bid: 500 Ethereum
But NFTs are not just limited to digital artwork. Anything digital can have its own NFT, including articles, music, domains, and much more!
One of the most popular use cases have been with blockchain games like CryptoKitties. It’s a game where you can raise, buy, and sell digital cats. These NFTs help out a lot. You can raise an amazing CryptoKitty, and create an NFT to verify that you own it. And maybe someone comes along with a lot of money who wants to buy it. You can sell them the cryptokitty along with the NFT to verify their new ownership.