NFT (non-fungible token)

A Non-Fungible Token (NFT) is a unique digital token recorded on a blockchain that can represent ownership, authenticity or access rights relating to a digital or physical asset.

Unlike cryptocurrencies such as Bitcoin, which are interchangeable, every NFT is unique. This property is known as non-fungibility. While one bitcoin has the same value as another bitcoin, each NFT has its own unique characteristics and cannot simply be exchanged on a one-to-one basis.

NFTs can represent a wide variety of assets, including digital artwork, collectibles, event tickets, gaming items, memberships, certificates and tokenized real-world assets. Smart contracts also allow NFTs to include programmable features, such as automatic royalty payments to creators when an NFT is resold.

Although NFTs received widespread attention through digital art collections during the 2021–2022 boom, the technology is increasingly being used for practical applications such as digital identity, asset authentication and tokenization. At the same time, speculative trading in collectible NFTs has declined significantly compared with the peak years.