What is an NFT?

A non-fungible token (NFT) is a special type of cryptographic token which represents something unique; non-fungible tokens are thus not mutually interchangeable. This is in contrast to cryptocurrencies like bitcoin, and many network or utility tokens that are fungible in nature. Non-fungible tokens are used to create verifiable digital scarcity, as well as digital ownership, and the possibility of asset interoperability across multiple platforms. NFTs are used in several specific applications that require unique digital items like crypto art (rare art), crypto-collectibles and crypto-gaming.

One NFT is not equal to any other NFT, either in value or in the properties of the token itself. Each token is assigned a digital hash that distinguishes it from every other NFT of its kind. This feature enables NFTs to act as a proof of provenance.