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Non-Fungible Tokens (NFT)

Non-Fungible Tokens (NFT)

A "Non-Fungible Token" (NFT) is a unique digital identifier recorded on a blockchain that certifies ownership and authenticity of a specific digital asset, such as artwork or gaming items.

While standard digital media can be copied infinitely, NFTs attach a cryptographic signature that establishes digital scarcity. Creators benefit from embedded smart contracts that automatically yield royalty percentages during secondary peer-to-peer sales.

Key Takeaways (30-Second Summary)
  • Uniqueness: Unlike fungible currencies, each NFT has unique metadata and cannot be exchanged on a 1-to-1 basis.
  • Royalty Distribution: Smart contracts pay creators automatic commissions whenever their works are resold.
  • Ownership Certificate: Purchases register ownership of the token itself, not necessarily the copyright of the underlying art.

About "Non-Fungible Tokens (NFT)"

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