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· Posted on
September 8, 2021

What’s an NFT?

NFTs - or non-fungible tokens - are all the internet rage. But what actually are they?

What's the key learning?

  • An NFT, or a non-fungible token, is a digital asset that can be traded online just like Bitcoin or other cryptocurrencies
  • They’re used by people as a way to represent ownership of a unique asset - kinda like the trust deed to an item, but in the digital world
  • An NFT is completely unique (hence the non-fungible part), and can’t be replaced.

An NFT, or a non-fungible token, is a digital asset that can be traded online just like Bitcoin or other cryptocurrencies. 

They’re used by people as a way to represent ownership of a unique asset - kinda like the trust deed to an item, but in the digital world.

But here’s the catch: an NFT is completely unique (hence the non-fungible part), and can’t be replaced. In other words, there’s no equivalent asset to an NFT. 

You can think of it like a one-of-a-kind Baggy Green signed by Sir Donald Bradman, but in internet form.

Actual NFTs include:

  • Jack Dorsey’s first tweet 
  • A digital-only photograph of supermodel Emily Ratajkowski, standing in front of a real photograph of herself
  • An exclusive song by Lindsay Lohan and DJ Manual Riva 
  • 10 pieces of digital art by musician Grimes (aka Elon Musk’s baby mama)
  • A video of Tony Hawk performing a skateboarding trick.

How are NFTs different to crypto?

If one Bitcoin is worth $65,000, you can exchange that Bitcoin for the money. That’s because Bitcoin is defined by its value, rather than its unique properties. 

But there’s no monetary equivalent asset to Jack Dorsey’s first-ever tweet, because it has unique properties. Kind of like art. Hard to value.

Where are NFTs stored?

Without getting into the nitty gritty, NFTs are part of the Ethereum blockchain. 

Ethereum is a cryptocurrency, but its blockchain (aka the building blocks behind it) support NFTs. 


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