Editor’s Note: SOFREP encourages our members to submit content to us for publishing consideration. Today we begin a series by Miguel Castro who is writing about NFTs or, Non-Fungible Tokens. It may seem like a rather nerdy topic for a site like SOFREP, but NFTs are becoming important in the digital world we all partly inhabit for better or for worse. They establish a right of ownership of the software code medium that becomes art, music, computer programs, and even real estate in virtual worlds. Most NFTs are bought and paid for with digital currency like Bitcoin and Ethereum thus representing an entirely digital economy of virtual products paid for with virtual currency.


If you spend at least a couple of hours meddling down the internet rabbit hole, whether you’re visiting news or entertainment sites, spending time on social media, or even playing games, you will have probably come across the acronym NFT and some very insane news about the money they might be worth. But very few articles actually give you an in-depth guide on what they are, how they came about, where they are going, and of course, how to get involved in that sexy, but very confusing new internet world.

This series of articles will try to answer these questions.

Non-Fungible Token scheme
Non-Fungible Tokens scheme that visualizes traditional art with real money system and digital art with blockchain Ethereum system of tokens to make items unique and not fungible. (Created by Mario Taddei/Wikimedia Commons)


What Is an NFT

So let’s start with some basics.

NFT stands for Non-Fungible Token. It is a piece of digital content that exists on the blockchain, and through its existence has an ownership contract attached to it.

At the very core of that definition is that no two NFTs are alike, worth the same, nor are equally traceable. To put it simply, at the exact moment of a certain valuation we could trade one dollar for another, a Bitcoin for another Bitcoin, and so on and so forth. The thing with NFTs is that their value is more on the appreciative side, depending on their rarity, the artist, platform, or moment.