An NFT, or Non-Fungible Token, is a type of digital asset that uses blockchain technology to represent ownership or proof of authenticity of a unique item or piece of content, such as artwork, music, videos, and more. Unlike cryptocurrencies like Bitcoin or traditional money, which are fungible, meaning each unit is the same as every other unit, NFTs are one-of-a-kind. Each NFT has a distinct digital signature that makes it impossible for NFTs to be exchanged on a like-for-like basis, thereby ensuring their uniqueness and scarcity.
NFTs are really art as money, art as currency, which means there’s more accessibility for artists and for people who want to buy art. It’s great just to have a digital representation of something that you can own.
Tim Kang
In Simpler Terms
Think of NFTs as the digital equivalent of collecting rare vinyl records or first-edition books. Just as each of these physical items has unique qualities that make it valuable, each NFT has a unique digital signature. When you buy an NFT, it’s like getting a signed copy of your favorite album, but for the digital world. You own a piece of digital history that’s verified and stored on a blockchain, making it both uncopyable and unchangeable. NFTs have gained popularity in the art world and beyond, allowing creators to monetize digital goods that might otherwise be easily copied and shared online.
