(I wrote a brief explainer, publishing it as an HTML document, and minting that document itself as an NFT open edition; it's available on Zora through 6/22/2024 11:16 p.m. EDT.
The plain text is below.)
What does “NFT” stand for?
Non-Fungible Token. “Non-fungible” means unique; not interchangeable.
Conversely, cryptocurrency tokens, like bitcoin, are “fungible” that is, they’re interchangeable, like pennies.
What is it?
An NFT is a small set of data stored on a blockchain. It is created by executing a function in an application on the blockchain. This is called “minting,” and the application is called a “smart contract.”
What is a blockchain?
A blockchain is a network of computers running blockchain software, which is a kind of database, or ledger, with cryptographically authenticated records and transactions. Anyone can write to it; no one can delete from it.
What is an NFT good for?
An NFT is a kind of technology, the uses of which we’re just beginning to imagine. Because of having qualities like provable rarity, authenticity, provenance and proof of ownership, a typical use case for an NFT is that it can be valued as a digital asset or collectible, which can be bought, sold, traded or collected on a marketplace.
What does an NFT look like?
The set of data comprising an NFT can be viewed in a “block explorer,” a website for exploring transactions on a blockchain. The binary data, stored in a transaction, is a long string of numbers and letters, like a very long VIN number for a car. This data describes the various parameters, addresses, and metadata defined for that NFT in the minting process. Other codebase views can decode the binary data.
An NFT’s minting function can define other digital (or even physical) media, like images, audio, video, and more, to be attached to it. In fact, that can be the purpose of creating the NFT.
An NFT can have its own preview image, just as a song has its own cover art.
How do I get an NFT?
To interact with a blockchain, you need an account. An account is created with a cryptocurrency wallet. An example of a simple wallet is software which runs as a web browser extension. There are also wallets created and controlled by cryptocurrency exchanges, and there are also hardware wallets.
Any interaction with a blockchain requires a transaction, which typically generates a cryptocurrency fee; so you must first purchase some cryptocurrency, either with the native functions in your wallet, or from a cryptocurrency exchange.
