What is an NFT?
What is an NFT is the question that is on the mind of most people who do not live under a rock. Its been the burning topic of the year as there have been a lot of millions that have been spent in the newly found industry.
NFT by definition simply stands for Non-Fungible Token. Well, this probably does not do too many people justice since it is still a mouthful. Therefore let me explain in detail what it means to say Non-Fungible Token.
Fungible and Non-Fungible Goods
Investopedia defines fungible goods as items that are interchangeable because they are identical to each other for practical purposes. These include stock cars before they are used, brand-new identical clothes, spoons, or literally anything that can be recreated identically. On the other hand assets like diamonds, land, or baseball cards are not fungible because each unit has unique qualities that add or subtract value. These are non-fungible goods as there are not any identical items that can be interchanged with them. NFTs (non-fungible tokens) possess this trait and this allows the certification of digital art, music, and other forms of media.
Now that we have put the whole fungible or non-fungible part behind us let me talk about the minting process of NFTs. Minting an NFT refers to the process of turning a digital file into a crypto collectible or digital asset on the Ethereum blockchain. It can also be on the Solana blockchain or whatever blockchain for that matter. The key point is that it is about turning normal files into crypto collectibles( tokens ) that can then be only owned by one person at a time hence are more valuable to people, unlike the normal digital file which can be owned by many people at the same time. This is the process that makes NFTs very valuable collectibles.