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What is a Non-Fungible Token (NFT)?

By August 17, 2021October 7th, 2021No Comments

Non-Fungible Tokens, or NFTs, are cryptographic assets on blockchain with unique identification codes and metadata that distinguish them from each other. Unlike cryptocurrencies, they cannot be traded or exchanged at equivalency. This differs from fungible tokens like cryptocurrencies, which are identical to each other and, therefore, can be used as a medium for commercial transactions.

That’s the technical definition. In lay mans terms, an NFT is something that is 100% unique: a one-of-a-kind item, which is true for all art and other creations. With physical art, the uniqueness of the original creation is much easier to establish that with digital art. Blockchain technology fixes that. NFT art is the combination of the digital creation and the equivalent of its title, which is code stored on the etherium blockchain, identifying the digital file and its owner.