Fungible? What the heck’s fungible?
Excellent question. A quick Google of the term will tell you that it means ‘replaceable by another identical item’. Non-fungible therefore means that it is NOT replaceable by an identical item and is unique (check out the awesome infographic at the bottom of this post for a handy reference guide to fungible vs. non-fungible).
Next question: what’s a token?
A token basically represents an asset on the blockchain (sidenote: there is a difference between a cryptocurrency coin and a token, but we won’t go into that here). An asset can be anything: a 3D model, a piece of artwork, music, a tweet, or a book are just some examples, and the token is how we keep track of an asset on the blockchain.
Think of it kind of like a more advanced barcode, it contains all the relevant information so you can track who owns the asset, how much it has been traded for, which mint number it is etc. But because it’s non-fungible, the token is unique and only contains data for one single asset at a time.
So what’s an NFT?
If we put it all together, a non-fungible token is basically a unique identifier on the blockchain that holds all that data about something you’ve purchased and is proof of ownership (kind of like a digital receipt that can’t be messed with). One important thing that is tracked on the blockchain is which mint item you have (e.g. 1 of 100 or 1 of 1). This tells you the rarity of your item, which contributes to its value, so having that data readily available is incredibly important, especially if you are looking to buy NFTs as an investment or to trade them.
So, that’s NFTs in a nutshell! (If you want some more info about NFTs, check out this dope video by one of our amazing artists Amrita Sethi, where she explains what they are, and why it’s worth getting involved.)
We hope that’s shed some light on what an NFT is, but we know there’s so much more to learn if you’re new to the crypto space. That’s why we’ve created a whole range of resources for you to help get your head around it. We’ve got a crypto dictionary, NFT mythbusting, and top tips on investing in crypto and NFTs.
But really, the best way to find out is to jump in and have some fun playing with NFTs. When you sign up to Terra Virtua, you get a free NFT (from our super popular vFlect range) for you to enjoy. You can hang out with you vFlect in your fan cave and just have fun exploring how it all works. It’s totally free to sign up for Terra Virtua, and a great way to get involved in you’re new to the space.
And if you have questions or just want to have fun getting involved in this exciting world, be sure to come and join our Telegram and Discord communities where we chat about NFTs, crypto, and the latest news and drops at Terra Virtua.