In 2021, while cryptocurrencies were booming, another virtual product operating via the blockchain saw the light of day: the NFT. If these three letters can be intimidating, for several months they have especially intrigued the world of art as well as that of video games. Because each NFT has a particularity: it is unique.
NFT for Non-Fungible Token
NFT is the abbreviation of Non Fungible Token, which can be translated as “non-fungible token”. The term refers to an object which, once purchased, is indivisible and cannot be replaced. It is only owned by one person and each NFT in existence is produced in a single copy. And like several other virtual elements, it works on the same principle as cryptocurrencies.
The NFT: a work of art or a digital good in a single copy
But the big difference with virtual currencies that can be exchanged for money is that the NFT allows you to own a unique object. It also serves as a certificate proving when it was purchased, by whom and who is the original creator of the product. In fact, many unique objects can become NFTs. This is the case for original paintings and drawings, messages shared on Twitter, real estate in the Metaverse or virtual content in video games.
Buying NFTs involves using cryptocurrency
Typically, NFTs are offered for purchase at auctions. However, they cannot be purchased with regular money. Transactions related to NFTs go through the Blockchain, the complex system that manages cryptocurrencies like Bitcoin. You must therefore have a virtual wallet on these Blockchains to bid and own an NFT. In addition, they can be very expensive and reach several million euros.
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