BEGINNERS GUIDE TO NON-FUNGIBLE TOKENS (NFT)

NFTs stand for Non-fungible tokens. In economics, a fungible asset is something with units that can be readily interchanged like money. With money, you can swap a 1000 Naira note for two 500 Naira notes and the value will remain the same. When you lend someone money, you would care less as to whether it's the same note you gave them, that was returned to you. This is because the value of the money remains the same. However, if something is Non-fungible, this is impossible because a Non-fungible object has unique properties and cannot be interchanged. If you have a car you just got about a year ago and you lended it to someone, if a different car but the same model and color is returned to you, you would likely be pissed off. Although, your reaction would also be based on the state of the car as compared to your original car. Therefore, we can say your car is Non-fungible to you because if the same model and color is given to you, the value will not remain the same to you. NFTs are basically things that have no inherent value but are given value based on human psychology. As you should know, value can be created when a large group of people considers something to have value, even when it has no inherent value in reality. This is what the art industry thrives upon.