FAQ 13 – What is a NFT?
Definition of an NFT
NFT, English term meaning “Non Fungible Token“.
A NFT is a cryptographic token, i.e. an authentication token. A NFT can be used as a certificate to justify the purchase of a material good rather than a digital good.
Thanks to a NFT, its owner can prove that a good belongs to him.
Furthermore, a NFT has a system that allows us to know all those who have become its owners throughout its duration.
It is stored and can be authenticated thanks to a blockchain that gives it value.
The value given to a NFT depends on the supply and demand for it. Indeed, the higher the supply with little demand, the lower the value.
Conversely, the more demand there is than supply, the higher its value will be.
What NFT can we buy?
We can buy any NFT as long as the owner sells it.
Where can we buy an NFT?
There are platforms made exclusively for buying NFTs. Among them, OpenSea, Binance NFT, Nifty Gateway.
What does an NFT bring us?
Holding an NFT brings us its digital exclusivity. In fact, holding a NFT does not prevent others from having a carbon copy, or sharing it, however, it is like a painting, we are the only one to possess the original. This means that on resale ours will be much more valuable than the copy.
What is the difference between a fungible and a non-fungible?
A fungible can be exchanged with something of the same value such as a €5 note for example.
A non-fungible, on the other hand, can’t be exchanged because each NFT has its own value, each one is unique.