A non-fungible token (NFT) is a unique digital identifier that is recorded on a blockchain, and is used to certify ownership and authenticity. It cannot be copied, substituted, or subdivided. NFTs are digital assets that can represent anything digital, such as images, art, music, or recordings of sports events. They are built following the ERC-721 (Ethereum Request for Comment #721) standard, which dictates how ownership is transferred, methods for confirming transactions, and how applications handle safe transfers (among other requirements) . NFTs are generally part of the Ethereum blockchain, although other blockchains have implemented their own version of NFTs.
Some key features of NFTs include:
- Unique: NFTs are non-fungible, meaning they are unique and cannot be replaced with something else.
- Digital: NFTs are digital assets that can represent anything digital, such as images, art, music, or recordings of sports events.
- Blockchain-based: NFTs are recorded on a blockchain, which is a distributed public ledger that records transactions.
- Ownership and authenticity: NFTs are used to certify ownership and authenticity of digital assets.
NFTs can be associated with a particular asset, digital or physical, and may confer licensing rights to use the asset for a specified purpose. An NFT (and, if applicable, the associated license to use, copy, or display the underlying asset) can be traded and sold on digital markets.
Examples of NFTs include digital art, music, in-game items, videos, and more. NFTs can have only one owner at a time, and their use of blockchain technology makes it easy to verify ownership and transfer tokens between owners.
In summary, NFTs are unique digital identifiers that are recorded on a blockchain and are used to certify ownership and authenticity of digital assets. They are digital assets that can represent anything digital, and can be traded and sold on digital markets.
