What is now proved was once only imagined
– William Blake
NFTs are all the rage nowadays, but not everyone understands their true potential. Most people think it’s a marketplace for digital art and discard it as gambling or something that is only for the wealthy. I believe it’s the beginning of a new era for all content creators — bloggers, podcasters, YouTubers, artists, storytellers, photographers, basically everyone who likes to share. Let me tell you all about why I think so and how content creators can leverage this opportunity. But first, let’s understand what an NFT is.
NFT stands for Non-Fungible Tokens. It is a unique digital asset such as art, trading cards, memes, gifs, video clips, audio clips, tweets, this article or an ebook, basically anything that one can create, store and sell on the blockchain. Once tokenized, these assets can be bought, sold and traded using cryptocurrency.
Why is it called “non-fungible”?
Fungibility means interchangeability. So, any two units that can be evenly exchanged are fungible. Let’s say I give you a $10 bill. If you give me two separate bills of $5 each in return, we are even. It’s because every $5 bill holds the same value no matter what. So, money or fiat currencies are fungible assets. Similarly, bitcoin is a fungible token.
On the other hand, let’s think about two Harry Potter books. They may have the same story and book cover, but one of them is the first edition signed by J.K Rowling. So, you can’t exchange them evenly, and therefore they are non-fungible.
To get into more depth, check out this comprehensive guide to NFT for beginners by One37PM.
