NFT stands for “non-fungible token.” Unlike fungible crypto or traditional currencies, such as Bitcoin or the U.S. dollar (in which individual coins or bills are identical and perfectly exchangeable), NFTs are a digital asset which are completely unique. Most are recorded on the Ethereum blockchain. Almost anything digital—social media posts, digital art, GIFs, videos, music, sports highlights, and avatars, to name a few—can now all be sold as NFTs.
NFTs hold value in two ways: 1) as a crypto currency, and 2) as a collectible digital asset, such as an original piece of digital art or music.
At MAGPIE, we are most excited about how NFTs can link real-world collectibles to the digital world, and allow collectors to track history details as well as unlock new benefits through connection to the creator. This technology offers a simple onramp to help people understand what they have, what it’s worth, whether they should trade and sell it, and how to unlock its full value.