The meaning of NFT or non-fungible token
A non-fungible token or NFT is a unique and irreplaceable unit of data stored in a digital record (blockchain). NFTs can be used to represent easily reproducible items such as photos, videos, audio, and other types of digital files as unique, using blockchain technology to create a public and verified proof of ownership. Copying the original file is not limited to the owner of the NFT, and it can be copied and shared like any file. These tokens are distinguished from other cryptocurrencies such as Bitcoin and Ethereum in that they are not exchangeable
What is NFTs ?
NFT is a unit of data stored in a digital record, called a blockchain, that can be sold and traded. An NFT can be associated with a specific digital or physical asset (such as a file or a physical object) and a license to use the asset for a specific purpose. NFT can be traded and sold in digital markets.
How do NFTs work?
NFTs are different from ERC-20 tokens, such as DAI or LINK, in that each individual token is completely unique and is not divisible. NFTs give the ability to assign or claim ownership of any unique piece of digital data, trackable by using Ethereum's blockchain as a public ledger.An NFT is minted from digital objects as a representation of digital or non-digital assets.
What are NFTs used for?
Here's more information of some of the better developed use-cases and visions for NFTs on Ethereum.
- Digital content
- Gaming items
- Domain names
- Physical items
- Investments and collateral