NFT stands for non-fungible token.
A non-fungible token is a one-of-a-kind authenticated data unit stored on a blockchain that can be sold and traded. That means when you buy an NFT, you have unique ownership of that digital item.
An example of something fungible is money. If you borrow a $10 note this is interchangeable – you can pay it back with two $5 notes, 10 $1 coins, etc. However, a non-fungible token is the opposite. It’s not interchangeable because it is a unique digital asset. There is no copy or substitute. You might see 3 Buddy Franklin 1000th goal NFTs, but each one is unique, determined by a rarity within that NFT. The rarity may be the holograms, or shadow effect, or it might be the way the NFT media is presented, but it is unique.
NFTs can be representative of a range of real-life features including photos, videos, access passes and subscriptions, as well as music and art. Ownership is managed through a unique transaction ID and metadata that no other token can replicate. This unique transaction ID is stored on the blockchain.
“NFTs will have a direct and meaningful impact on our digital lives and on the evolution of global digital culture.” - Yat Siu
The history of NFTs dates back to 2012-2014 with the creation of coloured coins. In 2016, NFTs went mainstream with the introduction of collections such as CryptoPunks and Dapper Labs CryptoKitties. The first official NFT, Quantum, sold for $1.4million in June 2021, and as such the wider public started to take more notice of the value in NFTs.
NFTs have paved the way for musicians and artists to be able to freely create their works and build on their fan bases by creating a direct line to their audience.
NFTs also provide opportunities for companies to engage with their customers, and to provide real world rewards.
Image: Cover images of Ripper Skipper collection captains NFTs
For the AFL, NFTs will be an opportunity for footy fans to collect trading cards as digital collectibles. AFL Mint NFT owners will also have the opportunity to be rewarded with a range of physical and online rewards that AFL Mint will be releasing over time.
NFTs, like trading cards, allow collectors to try their luck at collecting a full set. Some collectors will want to get their hands on all of their favourite players’ highlights, others will want to gather all of their home teams’ player moments. Some collectors like to buy and sell different NFTs until they get the ones that they want.
By purchasing an AFL Mint NFT, you are gaining access to something very special. This is a unique opportunity to immortalise a piece of AFL history. You’d be the only person in the whole metaverse to own that NFT, until you decide to trade it or sell to another collector on the soon-to-be-released Marketplace.