<h5>What does non-fungible mean?</h5>  <p>Fungible (that’s a funny-sounding word, isn’t it?) means something that is easily copied. So non-fungible means something that cannot be copied. </p>
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<p>Let’s say you lost one of your favourite books. You feel a bit sad, but then you go to the bookstore and buy another copy of the book. So your book was a fungible item. </p>
<p>In the Louvre (a famous museum in Paris), hangs the Mona Lisa - the most famous painting in the world. If thieves were to break into the museum and steal the Mona Lisa, there’s no way in the world this priceless, hundreds of years old painting can be replicated. This is a non-fungible item.
</p> <h5>What’s a non-fungible token?</h5>  <p>A non-fungible token (NFT) refers to an asset in the digital world that cannot be copied. That’s saying something because you know how easily stuff on the internet can be copied, right? You just gotta copy paste or download it. Whenever you're copy-pasting or saving any information from the internet (be it an image, video, song, etc.), you’re downloading data. Data that any other person can also download.</p>
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<p>An NFT is a piece of data that belongs to a person because they bought it with a lot of money. Usually, this data represents a piece of art, music, meme, GIF, video game avatars, video of a sports highlight, etc.</p>
<p>The funny thing is you can download the same piece of data that someone owns as an NFT (and paid millions of dollars for). What makes their NFT valuable is a record on blockchain that they, and only they, own the original version of this data.
</p> <h5>Explain that to me again.</h5>  <p>Let’s try to untangle this through an example. Jack Dorsey, the co-founder of Twitter, sold his first-ever tweet as an NFT for $2.9 million. The tweet said, “just setting up my twttr.” Now if you went to Jack Dorsey’s Twitter page and scrolled down to 2006 (which is when he tweeted this), you’ll be able to download this tweet just as easily as Sina Estavi, the guy who paid $2.9 million for it.</p>
<p>Estavi’s copy of the tweet may just be a digital file like yours, but blockchain gives him exclusive ownership of it. That’s why your copy is fungible, but Estavi’s is not.
</p> <h5>How are NFTs created?</h5>  <p>An NFT’s value is determined by who created it. If you or I turned our tweets into NFTs, chances are they wouldn’t sell for much. But Elon Musk (another fellow whose tweets have sold for millions of dollars) can sell any digital file he’s created for a lot because he’s famous and many people are interested in his opinions.</p>
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Similarly, a graphic designer can create an NFT of their artwork or a singer can record a video clip of themselves singing and sell it as an NFT.
</p> <h5>How are NFTs sold?</h5>  <p>When an NFT is ready for sale, it goes up for auction on an NFT marketplace (basically websites where NFTs are sold).
Then interested people bid on it. The highest bid purchases the NFT. Even though NFTs are intangible, they are very lucrative and many get sold for thousands or millions of dollars.
Some NFTs retain their value or double their worth after their initial purchase. And some come crashing down in value. For example, when Sina Estavi tried to resell his NFT of Jack Dorsey’s tweet, which he had bought for $2.9 million, hardly anyone was interested in buying it.
So you see, buying and selling NFTs is a risky business.</p>

An NFT is a valuable and unique mix of art and technology that exists only in the digital world. Let’s find out how NFTs are made and sold.

What Is An NFT or Non-Fungible Token?

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What Is An NFT or Non-Fungible Token?

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