NFTs have become a major topic of discussion following the rise of blockchain and cryptocurrency. But what exactly are NFTs, and what key terms should you know to discuss them confidently in English? Let’s explore.
What Is an NFT?
NFT stands for Non-Fungible Token. The term "fungible" comes from economics, where it refers to goods or assets that can be mutually exchanged—like money or generic products. NFTs are unique digital tokens that represent ownership of a specific item, such as an image, video, or audio file. Each NFT contains a distinct code that acts like a digital certificate of authenticity, making it different from any other token—even if the visual content appears similar.
This uniqueness allows NFTs to be collected, traded, and valued based on their scarcity and provenance. While digital art remains the most common use case, NFTs can also represent ownership of physical assets, creative works, or even real estate.
In early 2022, the property rights to a house in Florida were minted as an NFT.
The word "token" appears in many everyday contexts. For example, a parking token is called a parking ticket token. In professional and academic settings—such as the TOEIC test—the term "token" often means "symbol" or "expression." Common phrases include "token of appreciation," "token of gratitude," or "token of good will."
Example sentences:
- Please accept this humble gift as a token of my appreciation.
- The action can be seen as a token of good will from the newly elected government.
Popular NFTs in the Cultural Spotlight
In Taiwan, NFT conversations often focus on releases from celebrities. Examples include Jay Chou’s Phanta Bear NFT, or NFTs from global figures like soccer star Lionel Messi and NBA player Stephen Curry. These are often referred to as celebrity NFTs.
When describing something or someone well-known, you can use terms like:
- Famous (from the word “fame”)
- Noted or notable (meaning worthy of attention)
- Celebrated (associated with celebration or recognition)
- Well-known or renowned (broadly recognized)
Example:
- The school is notable for its basketball team.
- Jerry is a celebrated professor.
Key NFT Jargon You Should Know
Engaging with NFT communities means understanding their unique language. Here are seven essential terms:
- GM / GN: Short for "Good Morning" and "Good Night." Common greetings in NFT social spaces.
- FOMO: Stands for "Fear Of Missing Out." Someone who buys NFTs primarily due to this fear is called a FOMOer.
- OpenSea: This is a major online marketplace for NFTs. Think of it as a public trading platform where users can buy and sell digital assets. However, due to its open nature, users should be cautious about potential scams.
- Delist: The prefix "de-" means to remove. To delist an NFT is to take it down from a marketplace.
- Rug Pull: This refers to a scam where developers abruptly abandon a project and take investors’ funds. It’s like pulling the rug out from under someone.
- Mint / Burn: To "mint" an NFT is to create or issue it. "Burn" means to destroy or remove it from circulation, often transferring control or making it permanently inaccessible.
- Floor Price: The lowest available price for a particular NFT collection.
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Copyright and Legal Considerations
Despite their growing popularity, NFTs raise significant copyright questions. Currently, it is difficult to verify whether the person minting an NFT actually owns the original copyright to the underlying asset. This has led to disputes and legal challenges across the creative and digital industries.
Nevertheless, the NFT market has attracted substantial investment and continues to evolve. For savvy investors and creators, it represents both innovative technology and new financial opportunities.
Frequently Asked Questions
What does NFT stand for?
NFT stands for Non-Fungible Token. It is a type of digital asset that represents ownership or proof of authenticity of a unique item or piece of content, using blockchain technology.
How do NFTs work?
NFTs are created, or "minted," on a blockchain network. Each NFT has a unique identifier that distinguishes it from any other token. This information is stored on a decentralized public ledger, ensuring transparency and security for owners and collectors.
Can NFTs be used for physical objects?
Yes. NFTs can represent ownership of physical assets such as real estate, luxury goods, or event tickets. This application is sometimes called "phygital" (physical + digital) tokenization.
What is a ‘rug pull’ in NFT slang?
A rug pull is a type of scam where developers promote a new NFT project, take investors' money, and then suddenly shut down the project and disappear. It's a significant risk in unregulated marketplaces.
Are NFTs a good investment?
Like any investment, NFTs carry risk. Their value can be highly volatile and depends on factors like utility, community interest, and market trends. Thorough research and caution are advised.
What is the difference between cryptocurrency and NFTs?
Cryptocurrencies like Bitcoin are fungible, meaning each unit is identical and interchangeable. NFTs are non-fungible—each token is unique and cannot be directly exchanged for another on a like-for-like basis.