NFT

Non Fungible Token -or- No Further Text

NFT stands for Non Fungible Token which is a digital token made up of computer code and data that lives on the blockchain to convey ownership of a property.  An NFT also refers to the actual property itself. NFT can also refer to No Further Text.

The NFT property could be a digital asset, for example virtual real estate in an online community a costume in a video game, an artistic image, digital content. The property could also be something in real life, for example actual real estate, an actual painting, a seat at a live concert, the first edition of a book. The property could also be a hybrid, such as who can rent a room in a cooperative working space. The digital tokens, or certificates of ownership, live on the blockchain but can also be bought and sold. NFTs are changing how we think about digital information, art, and ownership. 

According to Nicole Lapin in the article "WTF is an NFT" below, “Non fungible” means that it’s unique and can’t be replaced with something else. In contrast “fungible” would be something you could trade for something else and have the exact same thing. So money and bitcoins are fungible because if I gave you $10 and you gave me $10 we would have the same thing. But if you gave me a signed Babe Ruth baseball card and I gave you a signed Britney Spears poster, we wouldn’t have the same thing. Those items are “non fungible.” 

The "token" part has to do with the digital nature of this asset. It lives on the blockchain. Blocks are individual transactions or records that are strung together on a single list called a chain. We commonly use blockchain these days to refer to digital currencies like Bitcoin, but blockchain can store anything digital, like signatures or intellectual property. 

To "mint" an NFT means to generate it, for example: “It was a hard mint, meaning the token cannot be changed, as opposed to a soft mint, meaning the token is changeable.” Once created, then you sell it. 

Cryptocurrency companies that enable NFT transactions are the payment platforms and the platforms that generate and maintain the NFT. NFT platforms include Rarible, OpenSea, SuperRare, Nifty Gateway, Foundation, VIV3, BakerySwap, Axie Marketplace and NFT ShowRoom. NFT payment platforms include MetaMask, Torus, Portis, WalletConnect, Coinbase, MyEtherWallet and Fortmatic.

Historical perspective: The first-known NFT is considered to be Kevin McCoy’s 2014 image “Quantum.” The technology first appeared in 2014 but didn’t start hitting mainstream attention until 2021. In May, 2021 people were buying and selling an estimated 85,787 NFTs —at a total value of $5.8 million— a day, according to DappRadar. According to analysis by Protos, NFTs peaked on May 3, with $103 million in sales. 

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