A non-fungible token (NFT) is a unique digital asset verified using blockchain technology, often associated with digital art, collectibles, music, videos, and other online content. Unlike cryptocurrencies such as Bitcoin or Ethereum, which are interchangeable and hold the same value, each NFT is distinct and cannot be exchanged on a one-to-one basis.
Key Characteristics of NFTs:
Uniqueness: Each NFT has unique information or attributes that distinguish it from others.
Indivisibility: NFTs cannot be divided into smaller units; they exist as whole items.
Ownership and Provenance: The blockchain records the ownership history of each NFT, providing verifiable proof of authenticity and ownership.
Interoperability: NFTs can be traded across various platforms that support the same blockchain standards, such as Ethereum's ERC-721 or ERC-1155.