WHAT EXACTLY IS NFT? WHAT IT STANDS FOR?

Token that’s just not fungible.
That doesn’t make it any better, does it?
Sorry for that. “Non-fungible” means that it is one-of-a-kind and cannot be replaced by anything else. A bitcoin, for example, is fungible — swap one for another and you’ll get exactly the same thing. A one-of-a-kind playing card, on the other hand, is not fungible. You’d get something totally different if you swapped that for a different card.

How do NFTs operate?

Most NFTs are, at a top standard, part of the Ethereum blockchain. Ethereum, including bitcoin or dogecoin, is a cryptocurrency, but the blockchain often supports certain NFTs, which store extra information that allows them to function differently than, say, an ETH coin. Other blockchains, it should be noted, will enforce their own implementations of NFTs.

What do you buy at the NFT supermarket?

NFTs may be something digital (such as paintings, songs, or the brain being downloaded and made into an AI), but the new buzz is focused on using the technology to sell digital art.

Then each NFT is unique?

In the dull, scientific sense, each NFT is a distinct token on the blockchain. Although, unlike van Gogh, where there is only one definitive actual edition, it may also be like a trading card, with 50 or hundreds of numbered copies of the same artwork.

Who would spend hundreds of thousands of dollars for something that is essentially a trading card?

It is, after all, one of the reasons why NFTs are so complicated. Some regard them as the future of fine art collecting while others regard them as Pokémon cards.

JCash co-founder, fintech/blockchain expert. Interested in innovations in digital payments and AI technologies.