A non-fungible token (NFT) is a digital asset linked to a blockchain such asand . It is generally built using the same programming as cryptocurrency. Cryptocurrencies (and fiat) are fungible which means they can be exchanged or traded for one another, while unique NFTs can be bought and sold. NFTs are unique cryptographic tokens that cannot be replicated or replaced. NFTs can be art, GIFs, music, and videos.
Fungible coins likeand are a way to own financial assets on a blockchain. NFTs are a means of owning culture.
By adding various tags and metadata at NFT creation, each NFT is guaranteed unique from others like it. Because NFTs are tokens on blockchains, whoever controls the private keys for an NFT can prove their ownership and history of the item, termed provenance. The ability to prove the history of digital items is very valuable to collectors and drives much of the demand for Profile Picture (PFP) projects.
Non-Fungible Tokens (NFTs)
There is much speculation on the uses for NFTs and we are still just scratching the surface of their potential.
The first uses for NFTs focused on digital art and profile pictures (pfps) for projects like Crypto Punks. Additional utility has been added by using the individual NFTs as proof of membership or subscription for a community, like Bored Ape Yacht Club.
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Games like Decentraland have entire virtual worlds where players are invited to bring their own NFTs (Ethereum ERC-721 or ERC-1155 or even ERC-2309 tokens) and use them within the game. Players have set up digital art museums to show off their art (charging admission for the right to view it), some use their NFTs from other games as their avatars, and Decentraland itself sells the digital land itself as NFTs.