What Is an NFT?

A non-fungible token (NFT) refers to an asset that has specific details and certain values related only to itself. Each NFT is unique, and no two NFTs are alike. Additionally, NFTs are not interchangeable with one another, unlike fungible tokens (i.e., one ETH can be exchanged with another ETH).

NFTs encompass various industries, from in-game assets and digital art to music and collectibles. They also have use in tokenising real-world assets (RWAs), including real estate. Some of the more well-known NFT projects are Bored Ape Yacht Club, Loaded Lions, and Mad Hare Society.

Key Takeaway

An NFT, short for ‘non-fungible token’, is a unique, irreplaceable asset that lives on a blockchain.

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