An NFT is a on-fungible token, a unique digital asset built on the blockchain. It is a type of digital asset that operates similarly to Bitcoin, Ethereum, and other popular digital tokens, with one major difference: NFTs are not interchangeable. This means that while two digital tokens might both be worth $50, they could be completely different kinds of tokens, with different use cases and values.
NFTs are minted on the blockchain, meaning that each one has a unique cryptographic token embedded in it. These tokens are tied to a unique asset, whether that’s a piece of artwork, a game item, or a piece of writing. Each token is owned by an individual, so no two tokens can ever be truly interchangeable.
This makes them highly desirable for collectors who want to own something no one else has. However, NFTs are more than just collectibles — they’re also used for a variety of different applications. They can be used to create digital collectibles that can be sold and traded, to authenticate digital artwork and music, to represent game items, and even to represent physical assets like land deeds or home ownership rights.
Ultimately, NFTs are disrupting ownership as we know it and giving creators unprecedented control over their digital products.