NFTs & Web3

What are NFTs?

‘NFT’ stands for ‘Non-Fungible Token’.

Fungible? Non-Fungible?

Something that is ‘fungible’ means that it can be interchanged with something of the same value. An example of a fungible item would be a banknote, because banknotes are interchangeable with other banknotes.

Something that is ‘NON-fungible’ means it is unique whilst still being under the same class. A perfect example of a non-fungible item would be a theatre ticket; while it’s still a ticket and there are hundreds of other tickets to the same show, the one you have bought is unique to you and you only.

Token

A ‘token’ is a digital unit of data, the value of which is stored on a secure distributed database known as a blockchain. Blockchain technology prevents the asset from being forged or manipulated.

Summary

An NFT is classed as a “one-of-a-kind” and “unique” asset in the digital world that is not interchangeable. The details of an NFT can be verified by the public due to blockchain technology as it stores proof of ownership (previous owners & transactions). NFTs can be bought, sold and transferred like any other piece of property with the details of all transactions recorded on the blockchain.

What is Web3?

Web3 has become a catch-all term for the vision of a new, better internet. At its core, Web3 uses blockchains, cryptocurrencies, and NFTs to give power back to the users in the form of ownership. A 2020 post on Twitter said it best: Web1 was read-only, Web2 is read-write, Web3 will be read-write-own.

One of the main differences between Web3 and Web2 is that users won’t need separate log-ins for every site they visit but instead will use a centralised identity i.e. their crypto wallet that carries their information. They’ll have more control over the sites they visit, as they earn or buy tokens that allow them to vote on decisions or unlock platforms functionality.