What Is NFT (non-fungible token)

NFT stands for a non-fungible token, meaning that each is unique, and you can't just simply exchange one for another. It's been on meteoric rise as the most successful entity on the blockchain as a projected trillion-dollar industry. 

Have you ever collected or valued something? Was your ownership of those things important? If the answer is yes, you’re well on your way to understanding what exactly NFTs are. 

But, what if the answers are no, or “I don’t know”? Few months back, I was just sitting exactly where you are, skeptical and confused. Fast forward to now – I now know more and more informed about NFTs.

 Many people still don’t get it: why the hell would someone pay $36,000, or even $100,000 for a JPEG? To truly understand the value of NFTs, we need to know why things have value at all. 

The psychology behind NFTs compels more people to participate in the blockchain, anchoring each individual's belief about ownership of assets and value. The reasons people buy physical or digital assets goes beyond just the financial perspective.

The ownership of NFTs can reflect someone's identity or self-image, which can say something about who you are and the image you want to project to the world. 

Some people want more expression of themselves as an individual, others want to find a sense of belonging in unique communities. Sometimes, people want to own something that is perceived as rare, and valuable. 

Owning art isn't about keeping other people from enjoying it, but understanding and verifying who the one legitimate owner is. The great thing about NFTs is that artists get to sell their work with less fuss, and they earn royalties on every sale of art in the future. 

In real life, if an artist sells something once, it could trade hands 100 more times. The artist might never even know, and they'll never see a dime. But putting it on the blockchain, and an artist, creator or musician could get royalties for decades, which is absolutely game-changing for people in creative industries. 

Our wallets and how we spend our money is one of the biggest tools for activism that each and every single one of us has. We hold the power to change things with the causes we stand for. 

The users of blockchain are from various and diverse industries which cut across crypto, tech, design, business, and many others that have come together to help start and support the project. 

Some are still dabblers, others are experts. Together, we hope to foster the next generation of friends in cryptocurrencies. Have a wonderful week ahead.