What are NFTs

NFTs: Fungible

The “F” in NFTs is “Fungible”. Fungible means: “an item is able to be replaced by another identical item; it’s mutually interchangeable.”

If a group of friends placed one hundred dollar bills into a pot, and later that day we all decide to take it back, it doesn’t matter which one hundred dollar bill we pull out. This is because we all agree that each bill is worth the same.

NFTs: Non-Fungible

But what if one of those one hundred dollar bills was autographed by someone famous? The group of friends may deem that this one hundred dollar bill is worth more than the other one hundred dollar bills. The group may value this one hundred dollar bill for more than one hundred dollars. This makes this one hundred dollar bill fungible. It’s so rare that it can’t be duplicated.

One of the members of this group of friends may photograph or scan the bill, but that friend does not share the ownership rights of that one hundred dollar bill.

Token

Here’s where the “T” in NFT comes into play. If the friend that possesses that one hundred dollar bill also has a “certificate of authenticity”, he essentially has the right to say that he is the sole owner of that particular autographed one hundred dollar bill.

A token is essentially a digital “certificate of authenticity” for a Non-Fungible digital asset.

Popular NFTs

At OpenSea.io, you can review the different sorts of NFTs that are currently available (see OpenSea.io).

The most popular are:

Value

Just like the example of the autographed one hundred dollar bill. It has more value than the others because everyone in that group of friends agrees that it had more value. But it has more value to one member of the group than it would to another member. This drives the one hundred dollar bill up in value.

If no one in the group cared about the autograph, it would hold no additional value. Some people feel that NFTs are just a fad and no one will show interest in NFTs in the future. They say this because they feel like NFTs are not truly backed by anything tangible.

The Rarest DAO

This is what makes The Rarest DAO so interesting to those who don’t favor NFTs. We do sell NFTs, but we back the NFTs with tangible real-world assets. We buy the rarest of the rarest American treasures. (See: Our Hit List) We then fractionalize it as NFTs so that the public can have the ability to participate in the upsides of these rare American treasures.