Non-Fungible Token (NFT)

A non-fungible token, commonly known as NFT in the cryptocurrency world, is a cryptographic asset that represents ownership of something unique that cannot be interchanged.

Assets such as Bitcoin and Ethereum are fungible because they can be interchanged and there is no necessity for uniqueness. Whether you take Bitcoin A or Bitcoin B does not make any difference. NFTs, on the other hand, act as a singularly unique asset.

Most NFTs are created on the Ethereum network and are represented as ERC-721 tokens, a non-fungible token standard established on the Ethereum network. Some examples of NFTs are blockchain-based art, securitized tokens such as stocks, bonds, and real estate, and collectible video game items. There are many NFT marketplaces that facilitate the trading of these assets, with most revolving around art and gaming.