NFT meaning: What is a non-fungible token?

nft meaning
What is an NFT (non-fungible token)?

NFT is an acronym you might be familiar with. It means "non-fungible token". If you're not familiar with it, here are some facts you should know about it.

Non-fungible tokens and blockchain.

It is important to understand the definition of "NFT", since a "non-fungible token" is actually a component of the "blockchain"... It is also known as a chain of blocks or "a technology for storing and transmitting information that offers high standards of security and transparency since it operates without the need for a central controlling body. In particular, blockchain technology is used by the banking sector and developed to support transactions involving crypto-currencies and crypto-assets, even if its use is not limited to them. A token is a "digital asset created by a blockchain". There are two types of digital assets: fungible (like Bitcoins) and non-fungible (like Ether). Each digital asset has its own characteristics and cannot be exchanged for another.

The concept was introduced in 2015.

NFTs have recently been in the news, but they did not just appear. Their first appearance was in 2015 with the Etheria project, which offered to sell a plot of a virtual world. The Cryptopunks and CryptoKitties projects (Dapper Labs studio) were born in 2017 as projects that recorded the characteristics of non-real (virtual) objects and transferred ownership. It allows one to collect virtual kittens, which correspond to NFTs, which are tokens with distinct characteristics. CryptoKitties' success leads to the creation of a new standard: ERC-721, a new standard for tokens.

NFTs are highly profitable.

Digital works can be sold through NFTs for a great deal of money. For instance, in the art world, a work may be sold for nearly $70 million through an NFT. This proves the owner of the work is actually its owner. NFTs were introduced for art, but other fields like video games have also decided to use them, since NFTs can be used on a blockchain and can replace the publisher. NFTs are also appearing in sports, as shown by the NBA. NFTs can be resold and stolen, despite being virtual... Furthermore, the question of whether NFTs are environmentally friendly is regularly raised since this technology requires so much energy.