You’ve probably heard before: NFT stands for “non-fungible token”. But what does that mean?
Let’s explore the concept of fungibility. If something is fungible, that means it can be replaced with another thing and it will be like nothing has changed; it holds the same value to all interested parties. You can think of “fungibility” like “swappability”: if something is fungible with another thing, it is perfectly swappable with that thing. The quintessential example of a fungible asset is a dollar. For all intents and purposes, it doesn’t matter which dollar you have. So long as you have a dollar—that’s all that matters.
Other examples of fungible assets include:
- Unmarked bars of gold
- Bitcoin
- Double-stuf Oreos
So, if these things are fungible, what makes something non-fungible? Well, that would mean that a thing is not equivalently replacable with anything else. Like…
- The Mona Lisa
- The deed to a house
- Your firstborn child
Things that are non-fungible are one-of-a-kind, and no other asset is identical to it (although they may be considered to be of equal value, they are not identical).
Digital assets can be non-fungible too!
But how can this be? Digital bits and bytes can be copied for free, so how can you guarantee that something is actually unique?
That’s where blockchain technology comes to the rescue. Distributed ledger technology (DLT) like blockchain opens up some unique new technological possibilities, including the ability to mathematically, trustlessly prove the uniqueness of an asset and its ownership.
If that last bit sounds a bit too complicated, don’t worry, that’s what Freshly Minted is here for: we can help you understand and even make your own non-fungible digital assets!
Non-fungible assets are called non-fungible tokens (NFTs) in the blockchain world, and they have a huge variety of applications: from games to art to name registrars to certifications. And there’s nothing stopping the effects and usefulness of NFTs from expanding out to the physical world as well: tickets, experiences, VIP status, and more can be conferred by NFT ownership.
It’s not just a neat idea: big name companies are jumping on board the NFT ship:
- Coca-Cola launched its NFT collectibles in July 2021
- Visa bought an NFT for $150K in August 2021
- Adobe added NFT support to Photoshop in October 2021
That’s just the start.
The NFT market cap is a staggering 8-figure number.
This market is exploding, and it’s still just the beginning.
Don’t be left behind! Get in touch with Freshly Minted and promote your business to the forefront of financial technology.