What is an NFT?

Have questions about non-fungible tokens? Read this to learn more about NFTs and Galxe.

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Written by Zeno
Updated over a week ago

What is an NFT?

NFT is an acronym that stands for Non-Fungible Token

It's a type of digital asset created using blockchain technology.

Blockchains keep track of NFTs, and Smart Contracts power them.

Non-fungible tokens get designed under specific standards, and each NFT represents unique digital assets.

ℹ️ The two most common types of NFTs use these standards:

  • ERC-721: Single token standard, basic functionality: track & transfer

  • ERC-1155: Multi-token Standard, each token ID can get configured by type

ERC-721 represents single unique assets, also known as 1/1's, and ERC-1155 allows for creating multiple 'editions' of an NFT.

Is Crypto an NFT?

In short, yes.

Cryptocurrency can get categorized into two types.

Fungible Tokens

BTC, AVAX, BNB or ETH is fungible.

You can exchange it like-for-like and use it to pay fees on that network

🌀 Example: The value of a Bitcoin is based on its parity against other currency

Non-Fungible Tokens

NFTs like BAYC, Cryptopunks, OATs and Galxe NFTs represent unique assets. They are not usually traded on a like-for-like basis.

The value of a non-fungible token is often relative and subjective.

Generally, NFTs are unique and represent different attributes, qualities or meanings than traditional fungible assets.

Example: A Cryptopunk's value is based on traits & other factors like rarity.

Collect Your First NFTs With Galxe

NFTs can represent ownership or proof of authenticity of a wide range of tangible and intangible items, from digital art and music to virtual real estate in digital worlds.

Using a platform like Galxe, you can earn NFTs by contributing to your favourite communities!

Make sure to check to see if you already have NFTs to claim. 👇

NFTs are handy for rewarding your community and creating exciting campaigns to grow your brand!

Learn how to use Galxe to reward your community with NFTs here.

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