NFT stands for non-fungible token, which is a cryptographic token on a blockchain with unique identification codes that distinguish it from other tokens. NFTs are unique and not interchangeable, which means no two NFTs are the same. NFTs can be linked to digital items like digital artwork, GIF, Images, videos, Audio album, in-game items, but also to physical items like paintings, collectibles, real estate and cars.
A blockchain is a distributed digital ledger that allows for the secure storage of data. By recording any kind of information—such as bank account transactions, the ownership of Non-Fungible Tokens (NFTs), or Decentralized Finance (DeFi) smart contracts—in one place, and distributing it to many different computers, blockchains ensure that data can’t be manipulated without everyone in the system being aware.
Like an autographed baseball or a Maserati Zagato Mostro Barchetta, an NFT can be collected and valued. It’s a connection to a brand, personality and its heritage. Protected by the technology itself — the immutable nature of the blockchain digital ledger — authenticity is guaranteed. The value of an NFT also comes from its ability to be traded freely and securely on digital marketplaces or directly over the blockchain.