What in the world is an NFT aka Non-Fungible Token and are they really traded on a platform called the OpenSea?

What is an NFT?

An NFT is a Digital Asset stored on the blockchain.

These Digital Assets hold information, like descriptions, properties, and media files like digital art or video, music, gifs, games, texts and memes + more!

The history of every NFT is recorded on the blockchain, meaning buyers can prove their ownership and creators can receive royalties every time their work is re-sold.

NFTs can be traded on marketplaces, proudly displayed in online galleries or used to access exclusive content and real-life experiences.

NFT's are:

✅ Unique, one-of-a-kind, and non-interchangeable.

✅ Provably scarce,

✅ Liquid, and

✅ Usable across multiple applications.

What does NFT stand for?

NFT is an acronym for Non-Fungible Token (which is often misspelled as Non-Fundable Token).

What is the difference between fungible and non fungible?

Cryptocurrencies are considered fungible.

This means that each unit or token or coin are the same and equal and can basically be replicated.

Non-Fungible tokens are the opposite.

They are unique and can't be replicated.

How are Non Fungible Tokens Created, Purchased + Traded?

OpenSea is currently the world's largest NFT marketplace and can be used to create, purchase + trade NFT's.

Credits:

This FAQ was created James D. Ford GAICD | Principal Solicitor, Blue Ocean Law Group℠.

Important Notice:

This FAQ is intended for general interest + information only.

It is not legal advice, nor should it be relied upon or used as such.

We recommend you always consult a lawyer for legal advice specifically tailored to your needs & circumstances.