What are NFTs?

What Are NFTs?

NFTs, or non-fungible tokens, are a type of cryptocurrency created on a smart contract platform such as Ethereum. They are unique digital objects that can be cool to own or even profitable to trade. Think of them as digital collectible cards. They typically start out as something only enthusiasts care about, but if you get a rare one, it could be worth a lot one day.

What is fungible vs. non-fungible?

Cryptocurrencies can be fungible, meaning all the currency's units (i.e., tokens) are the same and equal, like grains of rice or dollars.

Non-fungible tokens are the opposite — every cryptocurrency unit, or token, is unique and cannot be replicated.

This "non-fungible" property can be used for many things, even certain types of currencies. But the current NFT craze is mostly fuelled by digital art and collectibles. People have figured out that a unique, digital object can be interesting, cool, and even have a significant monetary value. It's why the space has recently blossomed, encompassing thousands of projects involving artworks, gaming, and sports.

Venly Blogs about NFTs

Token standards: Understanding the difference between ERC-721 and ERC-1155
How to explore new NFTs
How to create and sell NFTs for beginners
Adapt or Get Left Behind: Why NFTs are Here to Stay

Updated on: 28/06/2022