Also known as: NFT

Definition

Non-Fungible Tokens (NFTs) are unique digital assets that represent ownership of a specific item or piece of content on a blockchain. Unlike fungible tokens, which are interchangeable and have the same value, NFTs are distinct and cannot be exchanged on a one-to-one basis.

Why it matters

• NFTs enable the ownership and provenance of digital art and collectibles.
• They provide a new revenue stream for artists and creators.
• NFTs can facilitate the tokenization of real-world assets.
• They foster community engagement through unique digital experiences.

Risks & Pitfalls

• The market for NFTs can be highly volatile.
• Ownership rights and intellectual property issues may arise.
• The environmental impact of blockchain technology is a concern.

Examples

• A digital artwork sold as an NFT.
• A virtual real estate plot in a metaverse represented by an NFT.

Related

None.