NFTs are unique items that verify authenticity and are secured by the blockchain. NFTs provide proof of ownership, origin, scarcity and permanence for a particular item.
Let’s break down the term “Non-fungible token” one piece at a time:
What does “fungible” mean? According to Dictionary.com: “Fungible – Goods being of such nature or kind as to be freely exchangeable or replaceable in whole or in part, for another or like nature of kind.”
Here’s an example:
Dollars are fungible. A $50 bill is interchangeable with other $50 bills. No matter where you are in the world, one $50 bill is the same as another $50 bill. All currency is entirely interchangeable – even Bitcoins.
Non-fungible means that items can’t be freely exchanged or replaced by similar items.
💎 For example, diamonds are non- fungible.
💎 Each diamond has unique properties – size, color, clarity and cut that make it different from other diamonds.
Likewise, NFTs are non-fungible. Each NFT is unique. You cannot freely exchange or replace one NFT for another. NFTs cannot be freely exchanged with something of like kind because there is nothing else like it. Think of NFT as an original painting. There can be copies made – but there is only ONE original.
According to Dictionary.com the definition of Token – a memento, souvenir, keepsake. Since NFTs are commonly known as digital collectibles, one might think the word “token” in NFT is derived from this definition; however, it comes from something entirely different – the blockchain.
So… what is the blockchain?
To understand the blockchain, you need to know a little about Cryptocurrencies:
🚀 Cryptocurrencies are digital currencies that exist on the internet.
🚀 Whenever someone transacts with cryptocurrency (buying or selling an item) that transaction must be verified.
🚀 This verification process is conducted on a group of transactions.
🚀 This batch of transactions is known as a block.
🚀 After the block is filled and transactions have been confirmed, the block is then connected to the previously verified block, creating an ever-growing chain of blocks or a blockchain.
🚀 EVERY single transaction of that currency is recorded, going back to the very beginning of that cryptocurrency.
🚀 You can think of it as an extremely long accounting ledger.
So… the token in NFT is a cryptocurrency token. An NFT exists on the blockchain and MOST NFTs are created and live on the ETHEREUM blockchain. This is where Aaron Chang will be releasing his NFT Archive Collection.
There are thousands of NFTs out there, from music, art and highlights of the best NBA moments… and soon The first Aaron Chang NFT.
The NFT industry is pushing our limits in how we can authenticate and verify transactions and ownership of our art. This is something very valuable for a collector and will be very valuable to you because for the first time, Aaron will be going into his Archives and releasing work that is unique, very rare, and an edition 1 of 1. So stay tuned, as we continue to share this valuable information, we will continue to share more specifics about the project.
P.S. If you want to accelerate your learning curve and completely understand NFTs, we highly recommend the book, The NFT Handbook: How to Create, Sell and Buy Non-Fungible Tokens. The NFT Handbook is a blueprint for the documentary, The NFT Revolution and is poised to become a standard in NFT education. Available on Amazon.
Stay tuned for more from our Tech Team…
…and in the meantime, if you have any questions, feel free to email us: [email protected]