Non-fungible tokens (NFTs) are unique blockchain-based assets that represent ownership of digital items like art, collectibles, avatars, in-game items, and more. Each NFT contains distinguishing information that differentiates it from other NFTs on its blockchain. Ownership is tracked on-chain. NFTs aim to authenticate scarcity and provenance of wholly digital goods.
Key properties of NFTs include:
- Unique – Each NFT contains metadata that distinguishes it from other NFTs.
- Indivisible – NFTs cannot be divided into smaller denominations.
- Indestructible – Stored immutably on blockchains like Ethereum, NFTs cannot be altered, deleted, or destroyed.
- Verifiable Scarcity – NFTs authenticate the scarcity and supply of otherwise reproducible digital files.
- Transferrable – NFT ownership can be publicly transferred peer-to-peer on the blockchain.
- Programmable – NFTs can be programmed with additional logic and capabilities.
NFTs aim to provide digital collectibles and assets real ownership, authenticity, and market value. Their applications continue to expand across digital art, gaming, licensing, certificates, ticketing, and more.