When first explaining NFTs, one usually starts with the following sentence:
NFTs stand for “non-fungible tokens”.
A perfectly natural place to start, no?
But trying to understand an NFT through the expansion of its abbreviation is like answering the question “what is an mp3?” with “it’s a MPEG Audio Layer-3.”
Well, yeah... but that answer doesn't quite get to the meat of the thing.
A better answer? An mp3 is a file type that completely revolutionized entire industries by changing the way we share and consume audio.
Yes, NFTs are “non-fungible tokens”. And sure, understanding what fungibility means is helpful (and we’ll get to that shortly). But it doesn’t quite get to the meat of the thing.