What does NFT mean?
In this article, we will explain to newcomers what an NFT is and give an overview of everything you should know about digital assets.
What does NFT stand for?
NFT is the abbreviation for Non-Fungible Token, in English: Non-exchangeable token.
What is a token?
A token (eng. Token) is the digitized form of an asset. So the token has a certain value or function. At the same time, real assets such as real estate or music rights can also be tokenized by overwriting the associated rights and obligations on the token. This means that the ownership relationships are digitally mapped and are therefore tradable.
A token can be both fungible (replaceable) and non-fungible (non-replaceable). Basically, “non-exchangeable” in this sense only means that it is a unique digital asset that cannot be exchanged one-to-one for another.
The situation is different, for example, with Bitcoins: bitcoins can be exchanged as desired, since they always have the same value. The same applies to cash: a ten-euro note has the same value as another ten-euro note.
Non-fungible tokens, on the other hand, can be compared to art objects such as paintings. They have an individual value. If you exchange them for each other, you usually do not get the same value that you pass on.
What is an NFT and how does it work?
Is NFT worth buying?
Why do people buy NFTs?