WTF IS AN NFT?

NFT stands for Non-Fungible Token. Non-fungible means that something is unique and one-of-a-kind, and cannot be easily traded for something else.

For example, imagine you have a piece of art or a gift that someone special gave you. It's special to you because it has sentimental value and you couldn't trade it for just any other item. It's non-fungible because it's unique and you wouldn't want to trade it for something else.

On the other hand, imagine you have a dollar bill. It's worth the same as any other dollar bill, so you could easily trade it for another dollar bill or something else that's worth a dollar. It's fungible because it's interchangeable with other things of the same value.

So when we talk about non-fungible tokens (NFTs), we mean that each one is unique and cannot be traded for something else of the same value. Just like your special item, NFTs are special and valuable because they are one-of-a-kind.

In the metaverse, NFTs can be used to buy and sell virtual land or buildings, just like you can buy and sell real estate in the real world. So, for example, if you want to own a virtual shop in a virtual mall, you could buy an NFT that gives you ownership of that virtual space.

NFTs can also be used to buy and sell virtual items, like clothes or accessories for your avatar. You can use NFTs to buy a special outfit for your avatar, or even a rare pet that only a few people have.

In the physical world, buying something like a piece of art means you have a unique item that is limited in quantity. Proof of ownership can be shown through a receipt, deed, or simply having the item in your possession. However, ownership of digital items on the internet doesn't work the same way. NFTs aim to change this by bringing some of the structure from the physical world to the digital realm, making digital assets scarce and distinct from one another. Proponents of NFTs also believe that they provide a secure method of proving ownership online.