Non fungible token

NFT

Non Fungible Token

What are NFTs and how do they work?


NFT stands for Non-fungible token. A digital artifact that reflects real-world assets such as art, music, in-game goods, and videos is known as an NFT.

“Non-fungible” more or less means that it’s unique and can’t be replaced with something else. For example, a bitcoin is fungible — trade one for another bitcoin, and you’ll have exactly the same thing. A one-of-a-kind trading card, however, is non-fungible. If you traded it for a different card, you’d have something completely different.

How do NFTs work?

At a very high level, most NFTs are part of the Ethereum blockchain, though other blockchains have implemented their own version of NFTs. Ethereum is a cryptocurrency, like bitcoin or dogecoin, but its blockchain also keeps track of who’s holding and trading NFTs.

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