Hi Adam. Here's my attempt at explaining an NFT (non-fungible token). Think of it as a crypto coin, such as bitcoin, which is attached to a digital item, such as my profile picture. You could make multiple copies of the jpeg of my face but only one would have the NFT attached to it. So it is a way of making that one picture unique. A digital-only doodle by Banksy would be worth little because it can be copied over and over. Each reproduction would not be a copy of the original but, in fact, another instance of the original. But if you attach an NFT to the doodle it becomes the unique original picture - and so it becomes collectable and tradeable. Unlike a bitcoin, the NFT will have no standalone price but its worth is in the job it does of enhacing the value of what it's attached to. Fungible means it can exchanged or replaced by other things that are exactly the same - such as ten pound notes or barrels of oil. Non-fungible means it is unique.
Hi Adam. Here's my attempt at explaining an NFT (non-fungible token). Think of it as a crypto coin, such as bitcoin, which is attached to a digital item, such as my profile picture. You could make multiple copies of the jpeg of my face but only one would have the NFT attached to it. So it is a way of making that one picture unique. A digital-only doodle by Banksy would be worth little because it can be copied over and over. Each reproduction would not be a copy of the original but, in fact, another instance of the original. But if you attach an NFT to the doodle it becomes the unique original picture - and so it becomes collectable and tradeable. Unlike a bitcoin, the NFT will have no standalone price but its worth is in the job it does of enhacing the value of what it's attached to. Fungible means it can exchanged or replaced by other things that are exactly the same - such as ten pound notes or barrels of oil. Non-fungible means it is unique.
I love the word fungible