What is an NFT (aka Non Fungible Token)?

What is an NFT (aka Non Fungible Token)?

An NFT (aka Non Fungible Token) is a Digital Asset stored on the blockchain.

These Digital Assets hold information, like descriptions, properties, and media files like digital art or video, music, gifs, games, texts and memes + more!

The history of every NFT (aka Non Fungible Token) is recorded on the blockchain, meaning buyers can prove their ownership and creators can receive royalties every time their work is re-sold.

NFTs (aka Non Fungible Tokens) can be traded on marketplaces, proudly displayed in online galleries or used to access exclusive content and real-life experiences.

NFT's (aka Non Fungible Tokens) are:

✅ Unique, one-of-a-kind, and non-interchangeable.

✅ Provably scarce,

✅ Liquid, and

✅ Usable across multiple applications.

What does NFT (aka Non Fungible Token) stand for?

NFT is an acronym for Non Fungible Token (which is often misspelled as Non Fundable Token).

What is the difference between a Fungible and Non Fungible Token?

Cryptocurrencies are considered fungible.

This means that each unit or token or coin are the same and equal and can basically be replicated.

Non Fungible tokens are the opposite.

They are unique and can't be replicated.

How are Non Fungible Tokens Created, Purchased + Traded?

OpenSea NFT (aka Non Fungible Token) marketplace is currently the world's largest platform for creating, purchasing + trading NFT's (aka Non Fungible Tokens).

Further Reading: To DAO, or not to DAO ➲ That is the web3 question!

Credits:

This FAQ was created James D. Ford GAICD | Principal Solicitor, Blue Ocean Law Group℠.

Important Notice:

This FAQ is intended for general interest + information only.

It is not legal advice, nor should it be relied upon or used as such.

We recommend you always consult a lawyer for legal advice specifically tailored to your needs & circumstances.