What Are NFTs And How Do I Get In On The Action?
What Are NFTs And How Do I Get In On The Action?
Published: 04/26/2021 by Samurai Sydney
Chances are you’ve been seeing the term NFT popping up in headlines all over the place. But what are NFTs? NFT is the abbreviation for non-fungible token. NFTs are a type of cryptographic asset that are verified using blockchain technology. Huh? WTH does that mean? If you a creator and an investor, NFTs could be the right up your alley with the alternatives portion of your portfolio. Let’s dive in.
What are NFTs?
When I first heard about NFTs, I didn’t know what the hell people were talking about. Now, I understand what they are, but I still find this new asset class incredibly bizarre. This is mostly due to the insane amounts of money people are throwing into them. More on that below.
First, let me help you better understand what a non-fungible token is.
Simplest Definition Of A Non-Fungible Token
The simplest definition of an NFT is an original, one-of-a-kind asset that can be digitally authenticated using technology. The type of technology that is used to verify an NFT’s authenticity is blockchain. Blockchain is encrypted and includes information such as who sold the NFT, who bought it, and when it was sold. NFTs are cryptocurrencies. But unlike Bitcoin, which is a fungible cryptocurrency, NFTs are all unique. Because a non-fungible token is unique and can be digitally authenticated, this creates scarcity and helps increase its value.
Wait, step back a minute. Need a refresher on blockchain? Here’s my oversimplified stab at it. Blockchain is a type of database technology. Data is grouped together into clusters: the blocks. Each block has a storage capacity. Once a block is full of data, another block is created and filled with new information.
These blocks of data are strung together chronologically like a chain, creating a timeline of data. In other words, blockchain is a chain of unique data blocks. When a block is full, the data inside is essentially frozen in time. One way to visualize blockchain is like a bunch of snapshots put into an album chronologically.
Regular Money Is Fungible. NFTs Are Not.
Another way to better understand what NFTs is to understand what they are not. The opposite of an NFT is a fungible asset. Take everyday money as a classic example. Let’s say you have 2 bucks in change in your piggy bank. You might have 20 dimes, 8 quarters, or 2 silver dollars. Instead of carrying heavy coins around, you can exchange them at a bank for two crips one-dollar bills. Or you could even ask for a two-dollar bill instead. You can continually substitute or exchange various coins or bills to represent your $2.
Regular currency is fungible because you can hold it in different forms that represent the same value.
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TNT:
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Follow MM on X == https://x.com/Slashn
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KTFA
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FRANK26….9-13-26…..Z &T
This video is in Frank’s and his team’s opinion only
Frank’s team is Walkingstick, Eddie and Omar in Iraq and guests
Playback Number: 605-313-5163 PIN: 156996#
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KTFA:
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Follow MM on X == https://x.com/Slashn
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Good Morning Dinar Recaps,
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KTFA
Saturday Night Video
FRANK26…9-12-26….NOT GOING
This video is in Frank’s and his team’s opinion only
Frank’s team is Walkingstick, Eddie and Omar in Iraq and guests
Playback Number: 605-313-5163 PIN: 156996#
TNT:
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Emailed to Recaps~ Thank you David
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