The theme this week on the One Minute Retirement Tip podcast is Non-Fungible Tokens (or NFTs)...explained. 

Today, I’m talking about what exactly is a NFT? A NFT or Non-Fungible token is a unique digital token that is attached to a digital item. This digital item could be any number or things, like a piece of art, a song, or even a festival ticket. 

It’s a type of cryptocurrency, because the token is stored on a digital ledger or blockchain, and it’s 100% digital. You’re receiving not the digital item itself, but a unique token that is kind of like DNA for that digital item and proves that you own it. 

So if you buy a piece of art or Jack Dorsey’s autographed first tweet, you won’t actually receive the item. You’ll have the digital token instead that proves the one-of-a-kind item belongs to you. 

Each non-fungible token is truly unique, which is where the non-fungible name comes in. Non-fungible means that it is unique, one-of-a-kind, and cannot be divided up into smaller pieces. 

Other cryptocurrencies, on the other hand, are fungible; one Bitcoin can be replaced by every other Bitcoin and they all have the same value. The same is true for traditional currencies, gold coins, etc. 

On the other hand with Non-fungible tokens, it’s the uniqueness that makes these tokens non-fungible. 

That’s it for today, Thanks for listening! My name is Ashley Micciche and this is the One Minute Retirement Tip. 

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