What is an NFT?
NFT is the abbreviation for Non Fungible Token. Fungible is a term used in economics to mean something is interchangeable. Like a twenty dollar bill can be switched for another twenty dollar bill and no one cares. However, 99% of our lives are filled with items that are not fungible. A token is something that is just a representation of something else and is stored on the blockchain. An NFT could be for land deeds, concert tickets or digital photos of cats. In our case we tied an NFT to a physical vinyl album. Each vinylkey album is distinguishable and you can track the ownership of each one separately. Each vinyl album is visually unique and contains an embedded NFC tag with an identification number. Read our other articles how this is a great new ability to create a next level collectible vinyl album.
The NFT can represent anything and eventually we will not be using the abbreviation of NFT as there becomes specific use cases for them. This is already happening as projects like Bored Apes and Moonbirds are being called Profile Pic ( PFP ) projects. Royal.io is calling their NFT for music royalties a Limited Digital Asset ( LDA ). Our plan is to have another category called vinylkey!!
Lots of people think that NFTs are for virtual goods only but read here for our thoughts on NFTS as so much more than JPGs.
If you are still confused (and in need of a laugh) then check out the Saturday Night Live skit for a complete explanation (sort of). NFTs - SNL