NFT (Non-Fungible Token)
A unique digital asset recorded on a blockchain that represents ownership of a specific item — unlike fungible tokens, each NFT is one-of-a-kind.
What is NFT?
A Non-Fungible Token (NFT) is a unique cryptographic token on a blockchain that represents ownership of a specific item — digital artwork, music, collectibles, in-game items, virtual real estate, or even real-world assets. Unlike fungible tokens (where one Bitcoin equals any other Bitcoin), each NFT has unique metadata and a distinct token ID, making it non-interchangeable. NFTs enable provable digital scarcity and verifiable provenance without a central registry. The technology surged to mainstream attention in 2021, with some NFTs selling for millions of dollars. Trading volume collapsed roughly 97% from peak in 2022, raising questions about speculative excess versus genuine utility. NFTs have legitimate applications in ticketing, gaming, intellectual property, and digital identity.
Example
Beeple's digital artwork 'Everydays: The First 5000 Days' sold as an NFT at Christie's in March 2021 for $69.3 million — the third-highest price achieved by a living artist at auction. The NFT encoded Beeple's ownership provenance on the Ethereum blockchain and transferred automatically upon payment, with the 'ownership' of the digital file recorded permanently in the blockchain's public ledger.
Source: Christie's — Beeple NFT Sale