NFT stands for ‘Non-fungible Token’. ‘Non-fungible’ basically means that it can’t be exchanged for a similar item as its value is in its uniqueness. Money, for example, is fungible; you could swap a £10 note for another £10 note, or two £5 notes, and you won’t be out of pocket. Whereas a piece of artwork, like the Mona Lisa, is non-fungible as no matter how many copies and prints are out there, there is still only one original piece.

In a technical sense, every NFT is a unique token on the blockchain and this can be anything digital from music, to artwork, to collectibles. Once purchased, an NFT can be held in a digital wallet and proof of the transaction (and therefore ownership of the NFT) will be recorded on the blockchain.

Most of the current hype surrounding NFTs is around digital art, with pieces selling at auction for as much as $91.8 million. More recently, major names in the world of sport, such as the NBA and Major League Baseball have started to push the NFT market into the realm of digital collectibles, with many leagues and athletes releasing their own collections.

With the NFT market skyrocketing from an estimated $82.5 million in 2020, to $17 billion in 2021 (a massive 21,350% increase), Fatsoma are here to help you get in on the act, and take your first steps into the world of NFTs.

Find out more about NFTs and how they work in our FAQs page here.