NFT stands for Non-Fungible Token. Fungible goods can be exchanged for other goods from the same category while their value remains the same. So a dollar in my pocket and a dollar in Kanye West’s pocket can both buy the same things.

But a copy of an X-Men comic, signed by Stan Lee and handed by him at a convention to an admiring fan, is not worth the same as another copy of the same issue.

NFTs can create the same uniqueness in digital files.

How do NFTs work?

<aside> 📜 NFTs are decentralized digital certificates of authenticity and property that can be appended to any digital asset and which are programmable.

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• NFTs are decentralized digital certificates of authenticity and property... Certificates are nothing new, but for the first time, there is no third party required to produce them. Any user can create a certificate autonomously on a blockchain
• …that can be appended to any digital asset… NFTs have been initially associated with images, but they can also be applied to video, music, event tickets, financial products, etc.
• …and that are programmable. NFTs are digital products, and therefore they can have additional features built into them. Artists, for example, have used this ability to hard-code the collection of fees every time their artwork gets sold.

Go to the next chapter → INTERPOLATIONS of Carbono insights