NFTs are taking over the Internet by storm, but what are they?
(Solana Boss Bulls Club)
The word NFT is an abbreviation for the term Non-Fungible Token. Tokens are not to be mistaken with currency because they are one-of-a-kind assets similar to Pokemon cards or other collectors items. Nevertheless, similar to cryptocurrency, tokens are cryptographic, which means they contain unique DNA or metadata that distinguishes them from each other. Therefore, unlike currencies, NFTs cannot be exchanged or traded at equivalent prices. Although there is market fluctuation, 1 Bitcoin or 1 BTC will always be equivalent to 1 Bitcoin (BTC).
The same goes for other cryptocurrencies as well; for example, 1 Ethereum (ETH) = 1 Ethereum (ETH) and 1 Solana (SOL) = 1 Solana (SOL), etc. On the other hand, NFTs have unique properties based on their coding layers and rarity which incentivizes fanatics to search for raribles hoping to get lucky. Smart contracts, another form of metadata is collected and documented on the Blockchain and therefore cannot be altered or replaced. This makes each NFT unique and each ‘screenshot’ equally unique but far less valuable or special. NFTs can represent real-world items such as event tickets, artwork, real estate and more!