NFT stands for “Non Fungible Token”
SYNONYMS FOR NFT
- Technological currency
- Cryptocurrency
- Fungible asset
ORIGIN OF NFT
The first NFT was created in 2017 using the Ethereum network by two young Canadians and was called CryptoPunks,
NFTs possess a close relationship with cryptocurrencies, as tokens are units of value that are assigned to a business model. A Bitcoin is a fungible good and an NFT is a non-fungible good, in essence they are like two sides of the same technological coin.
The first thing we need to know to understand the concept of NFT is that in the legal system, there are fungible goods and non-fungible goods. The former are those that can be exchanged, they have a value according to their number, measure or weight. Non-fungible goods are those that cannot be substituted, they are unique.
An example of fungible goods is money. A banknote is a fungible good because you can exchange it without any problem for another banknote, it does not lose value and it is exactly the same. Moreover, this banknote is consumed when you use it.
On the other hand, an excellent example of a good that is not fungible would be a work of art. If you have a painting at home, it is not consumed when it is used, nor can it be replaced by another painting. A work of art is not equivalent to any other and therefore, they cannot simply be exchanged.
CURIOSITIES OF NFT
The most expensive NFT ever sold was made by digital artist Pak. His work, The Merge, was divided into over 312 unique fragments that were purchased by 29 thousand people for a total of $91.8M.