Yes, it is the same kind of decentralized data cryptography and ledger technology that cryptocurrency runs on, but with one big difference. Okay, that was a really rough sentence to take in and your Bitcoin PTSD might be spooling up upon reading “blockchain,” but stay with me here. This token is attached to the digital asset and resides on a decentralized ledger called a blockchain, that not only certifies the authenticity of the asset, but makes its uniqueness and ownership mathematically indisputable. So how is #6 of 17 digital issues of my frog doodle non-fungible? This is where things get interesting, and where the “token” part of NFT enters the story. They appear to be the same and even if one is worse for the wear, their values are still identical.Ĭonversely, non-fungible means one-of-a-kind. Or if we traded twenty dollar bills, neither of us would really care which one the other had. If you gave me a two tens for a twenty dollar bill, we’d be even-steven. I’m going to do my best with unpacking all of this, so let’s start with this funky word “fungible.” Fungible is defined as mutually interchangeable. This piece I purchased is my first NFT, which stands for Non-Fungible Token. You might be scratching your head by now and questioning why this screenshot of a doodle, which was drawn in under one minute by someone that no circle of artists has ever hard of, has any value at all, let alone $12,000. jpeg file of the identical image that may sit on anyone’s computer, a webpage, or in a mobile phone’s photo album. Instead, I own one of seventeen digital copies that are indistinguishable from a. I do not actually own the original of this frog doodle rendered in green-colored Sharpie on matte 8 x 11 printer paper. Any investments in and around blockchain are highly speculative. None of the information in the below article is intended to form the basis of any offer or recommendation or have any regard to the investment objectives, financial situation, or needs of any specific person reading this. There are serious risks involved in placing any investment in securities including NFTs and other blockchain projects - especially cryptocurrencies- given their ongoing volatility. DISCLAIMER: I am not an investment adviser and these are just my opinions.

Garagesale token