National NFT Day celebrates the importance of Non-Fungible Tokens in the online world. According to NFT Club’s timeline, the first NFT appeared on the Etherium blockchain on August 7th, 2015, making August 7th the ideal day to recognize this technology annually.
Wait, Non-Fungible What?
For most people, hearing that “NFT” stands for “Non-Fungible Token” only makes the situation more confusing. You’re not alone if this is you.
First, it’s actually important to understand what the less-than-commonly-used economic term “fungible” means. Items that are fungible are essentially identical to each other and are interchangeable as equivalent units. A bushel of corn, a silver coin or a dollar bill are fungible. Each dollar bill has a different serial number, but they are exchangeable one for one with each other. The obvious opposite would be something non-fungible. A painting and a sculpture in a gallery are both artworks, but they can’t be traded as equivalents. Two statues and a sculpture is not the equivalent of one statue and two sculptures. Each is unique.
Imagine now those unique works of art as being purely digital — for example, a photograph or a drawing of a cartoon ape. People might want to buy or sell such digital creations. Using a technology known as a blockchain, this is possible. The blockchain is a digital ledger, and provides proof of ownership of a digital item, represented as a “token.” Tokens can be traded back and forth in a way that doesn’t require a central authority. These traded items, such as art and real estate (“real estate” can be physical property or land in the Metaverse), are unique and therefore are not fungible despite being exchangeable.
Types of / Use Cases for NFT’s
Live Event Tickets
How to Celebrate
Take the opportunity each August 7th to learn more about the progress this important technology is making. If you own NFT’s, this is a good time to review your portfolio and potentially make adjustments no differently than you would with stocks and bonds. This day is also a great opportunity to scout out new NFT opportunities. Most importantly, if you are new to NFT’s, the 7th of August is the perfect opportunity to begin to learn how to make NFT’s for yourself and experiment with monetizing them.
Non-Fungible Token (NFT)| Investopedia
Non-fungible token | Wikipedia