Nyan Cat NFT on Foundation
What the hell is an NFT and why is everyone talking about them?
It seems as though, since December, the word NFT has been swirling all over the place. However, the answer to “What is an NFT” often tends to be incredibly confusing.
Personally, I’ve become familiar with the concept more recently, and lucky for me, our Founder and CEO, Joe Saavedra, has been involved in the world of NFTs, or non-fungible tokens, from their inception.
Having a personal NFT Mr. Miyagi has made things much easier, so to pay it forward I’d like to attempt to share the simplest explanation of NFTs possible.
So, what is an NFT?
Knowing that NFTs stand for non-fungible tokens initially meant nothing to me.
“What does non-fungible mean?” you may ask. It means that the token, or asset like an art file, is unique and can not be changed. Not doing anything for you.
Let’s take a step back.
Looking at why NFTs were created really helps with understanding what they are. NFTs bring value and also scarcity to digital assets.
Let’s say you buy an original Warhol, or even a Chanel purse. Both of those physical items come with documentation that certifies their authenticity. You can keep those documents, and even lock them up.
But how do you do that digitally? With NFTs, of course!
Another often agonizingly difficult topic that must be generally understood when discussing NFTs is the blockchain. In simple terms, a blockchain records transactions and stores them on a network of computer systems. This network is decentralized, meaning there is no one place where the data is stored or can be accessed. That makes blockchains incredibly secure.
So, in simple terms, an NFT represents one asset, and that asset is recorded on the blockchain.
If you want to prove your ownership, or prove that something is authentic, you’ll have all the information you need via your NFT on the blockchain.
While so many NFTs out there now are art or content related, this technology can store legal documents, event tickets, collectables, and more.
Simplifying the conversation around NFTs.
Unfortunately, when you speak to NFT experts, or even listen to Clubhouse rooms on the topic, the message is often lost because these experts know too much about NFTs. That has inspired several Infinite Objects (link) led Clubhouse rooms where we’ve helped the creator community understand the implication of creating NFTs of their work (check out upcoming rooms in our club “Infinite Knowledge” here).
We’ll be doing our best to help facilitate more conversations, and have created an NFT timeline here.
I hope this basic explanation of NFTs has helped inform you about the wonderful and exciting world of digital assets.