It's a story about human psychology and how the way we value things is shifting because of technology. A technology that some people think may revolutionize our society, while at the same time accelerating the climate disaster
NFT stands for non-fungible token.
Let's talk about the word fungible. It's this very specific word that economists use, it has a very precise definition. Non-fungible means non-replaceable, you can't replace it, there's only one of them, it's unique, it is Non-fungible.
Simply put, it is, a certain art or piece of art which is completely digital and more importantly it is unique. This piece of art is the only one on the planet that exists and there is no exact same model of this piece of art or there is no replica. That is why it is called non-fungible, meaning non-replaceable. It has emotional value. It has significance. It is a very valuable thing because it is scarce. There is only one of them.
For example, The Mona Lisa is non-Fungible, there is only one such painting. This piece of art is the only one on the planet that exists and there is no exact same model of this piece of art or there is no replica. That is why it is called non-fungible.
That's the NF in NFT, non-fungible. Now let's talk about the T, which is token. But first, let us see what is Blockchain.
The bank keeping meticulous records of every transaction becomes really important. We trust the bank to do this correctly. Banks and other middlemen have been keeping stuff like this running smoothly for centuries.
With the rise of the internet, people started to wonder, Is there a way that we could do this same thing, coordinate this same transaction of transfer of money between two people without the bank? The result is a very clever concept called the blockchain.
The blockchain fulfills the same thing the bank was doing, but instead of doing this privately, all of the transactions are actually recorded publicly on the internet.
It goes on to this public record where a bunch of people's computers all around the world are keeping track of every single transaction of everyone always. So people who are keeping track of every single transaction and people keeping track of the same will be able to know about how many cryptocurrencies or tokens we are holding or if we can pay for a certain digital product.
The point here is that the group verifies the legitimacy of every transaction by keeping an eye on every transaction to make sure that it adds up.
If there's anything that gets human psychology to value something, it's if an entire group validates that it's real and that there's only one of them.
There are tens of thousands of NFTs of all kinds. Some music is being given tokens, lots of art is being minted as tokens and being bought and sold. So, this sums up the NFT. Even the top Shot moments from the favorite NBA players have been turned into non-fungible tokens and are purchased by giving thousands of dollars.
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