There's a new type of digital asset and it's called NFT. And this is how I'm going to reward my loyal readers in the future - by selling my books as NFTs.
NFT, which stands for non-fungible token, has become one of the hottest topics in the world today.
If you are somewhat new to it, that's okay. Please allow me to explain it further...
As mentioned above, NFT stands for Non-Fungible Token. Non-Fungible would mean that there’s only 1 in the whole world, it's UNIQUE.
Cash is fungible. If you have a one-hundred-dollar bill, you can trade it for another one-hundred-dollar bill. Both hold the exact same value. If you give me your one-hundred-dollar bill and I give you mine, you've lost nothing because it’s the same value.
Bitcoin is fungible as well. If you send me a Bitcoin and I send you a Bitcoin back, both of these Bitcoins are the same. They both carry the same value. They are not unique.
But the real Mona Lisa painting that's in the museum is non-fungible. Because there’s only one Mona Lisa in the whole world. It cannot be replaced.
There are thousands of replicas of the Mona Lisa in this world and anyone could have a replica to enjoy the art, but there’s only ONE OWNER of the original.
Let's bring this same concept to the digital world...
An NFT is one of it is kind, there’s only one digitally.
By using the blockchain technology, a digital art owner can now create a SMART CONTRACT to transfer the digital art over to a new buyer as an NFT.
With an NFT, there will be token IDs as evidence to prove it has been transferred to another owner, just like a "receipt".
You will get a certificate of authenticity that will be YOURS, being authentic on the blockchain that cannot be manipulated.
In other, more simple words, you can now make a piece of digital content unique.