What is an NFT? 


Concretely, NFT is the acronym of the English term “Non Fongible Token”. Just like cryptocurrencies (Bitcoin, Ethereum, Monero…), NFTs are crypto-assets whose existence is made possible thanks to the blockchain. 

What does NFT mean?


The concept of fungibility is central to the interest of NFTs. Thus, the Larousse dictionary defines the term “fungible” as being something which “is consumed by use and which can be replaced by things of the same nature, of the same quality and of the same quantity”. For example, a banknote is completely fungible: two banknotes with the same face value are completely substitutable for each other, regardless of the year of printing or the serial number. The same goes for Bitcoin: the first bitcoin mined (created) has absolutely the same value as a bitcoin mined more recently. 

A non-fungible object is therefore, in contrast, an object that cannot be replaced by another object. In the artistic field, a famous painting like the Mona Lisa will obviously never have the value of a copy of the same format, even very similar. 

An NFT is therefore a digital title of ownership of a single asset, whether digital or physical. The main function of NFTs is thus to reliably digitally transcribe the uniqueness and rarity of an asset.  

What are the uses of NFT?


NFTs have many possible use cases, from the most serious to the most unusual. 

To start, digital trading cards can be created in the form of NFTs: like stickers or Pokemon cards, but in virtual form. We then speak of collectibles. 

Non-fungible tokens can also be used in the video game industry, for example to offer additional content inside a video game: characters, costumes, or additional powers (life, power, etc... ). Gaming giant Ubisoft recently announced to launch One Shot League, a soccer game that will use NFTs.

Digital works of art can also be offered in the form of an NFT, to guarantee the originality of the work, just like what already exists in physical form with the photographic prints signed by the author, in limited edition. Platforms like Rarible allow bidding on these digital artworks, in addition to traditional players like Christie's. 

However, an infinite number of uses are possible: NFTs are still in their infancy. For some, NFTs have certain limitations. It is thus complicated to exhibit an NFT in your living room as you would exhibit a traditional work of art. 
Paradoxically, issues in terms of intellectual property have already been raised: some NFTs could be created without the artists or rights holders concerned being informed.