WHAT IS NFT?

 NFT stands for

N- non

F- fungible

T- token

Before I explain NFT in details let me explain FUNGIBLE token

What are FUNGIBLE token?

Fungible token are token that can be easily swap with another token. For example, if i borrow #1000 note from you, I may decide to pay you back in different denominations, let say five pieces of 200 naira notes or two pieces of 500 naira notes.

So Bitcoin, paper Currency etc are fungible tokens

What are NON-FUNGIBLE token (NFT)?

NFT are unique, one-of-kind asset or material that CAN NOT be replaced with something else. For example, if I borrow your phone, and I want to return it, I must return the EXACT phone I collected from you. 

So NFT are digital ARTS such as pictures, music, video, etc (anything digital)  stored on the crypto world (called blockchain) 

The blockchain make the asset genuine and authentic. 

This digital assets stored on the blockchain can be auction for sale which can be sold in an insane price.

A picture of your pet can be sold for millions of dollars (isn't that insane)

Why are NFT sold very expensive?

Simple answer: Because it gives the buyer a sense of ownership of the original work of art rendering the rest fake or photocopy.

It is also a way to verify the originality of a physical asset.

There are other reasons

Summary of NFT using simple scenario

                   Scenario 1

If I decide to draw or snap a picture and store it on blockchain, then put it out for sale. Then fortunately somebody love the picture and decide to buy the picture, it means I just sold my NFT 

                  Scenario 2

If I decide to store a short clip of me dancing on blockchain, then put it out for sale. Then fortunately somebody love the video and decide to buy it,  it means I just sold my NFT 

Writing by Gabriel Ogbu.