Non-Fungible Tokens (NFTs) are unique, digital items where ownership is tracked via distributed ledgers of ownership (often referred to as blockchains, where each entry on the ledger is a block of information). NFTs are a special kind of entry on the blockchain where each token is unique, whereas “fungible” items such dollar bills all have the same value. Your $10 bill is worth the exact same as my $10 bill. Due to every NFT being unique, they can be used to authenticate ownership of all kinds of digital works such as sports collectibles, art, recordings, virtual real estate, pets and even memberships to exclusive clubs.
Each NFT is stored on an open, distributed ledger (the most common being Ethereum, Polygon, and Tezos) and since the blockchain is completely public information, anyone can track the movement of every token and payment made - you can even track all the way back to the creation of the token. The easiest way to think of the blockchain is imagine it as a digital ledger where the history of every thing that happens is publicly available. Every sale, purchase, gift, or even updates to tokens themselves are all readily available for anyone to peruse and verify legitimacy of everything done.
NFTs can even be customized so that the original artist continues to earn money from subsequent sales if they so desired! Thanks to how the blockchain works and NFT technology, artists no longer need to rely on third parties to sell their art or even drum up money to create physical merchandise (especially since overhead for something like that can cost a lot). Instead the artist can sell it directly as an NFT which also lets them earn more as well.
There are a variety topics and terms to dive into when it comes to learning the world of NFTs, here are a few of the most common key phrases/terms:
Digital Wallet – Often shortened to simply wallet, it is an application or hardware device that allows individuals to store and retrieve digital Items, such as cryptocurrency and NFTs. You may have multiple wallets depending on how you would like to interact with your various NFTs. Read more about wallets here.
Blockchain – A blockchain is digitally distributed ledger that facilitates the process of recording transactions and information across a network. It is a decentralized or distributed database containing records of NFTs and cryptocurrency. Sweet regularly "mints" NFTs on the Polygon, Tezos, SLP, and Ethereum blockchains. Read more about blockchains here.
If you want to know more, you can read more about the various terms here. Since there is such a wide range of topics to touch on regarding NFTs, we've divided up various explanations into multiple articles so you can dig into each one at your own pace. Take a look!
Different wallet services - Wanting to find out about the different wallet services and what types of tokens they service? This is your article!
Why do people acquire digital collectibles? - Learn more about some of the applications and use behind NFTs
Learning more about a token I own on Sweet - Looking to dig in a bit further on a token you've gathered into Sweet? Start here!