NFT definition

What is an NFT?

NFT stands for Non-Fungible Token, a unique digital asset that stands apart from interchangeable items like currency bills or cryptocurrencies. Unlike these, which can be exchanged, split, or combined, an NFT is distinctive and identifiable, much like a rare lithograph.

An NFT comprises several key data elements:

• Title

• Description

• Creator's details

• Associated media, typically an image or video

Primarily, NFTs are represented by an image coupled with these essential details.

What purpose do NFTs serve?

NFTs can signify ownership of a unique or limited-edition art piece, epitomized by the renowned Bored Apes and other famous NFTs. They also act as a means to verify ownership of tangible assets, like a luxury watch or a share in real estate.

Furthermore, NFTs serve as proof of certain rights. They can be a ticket to an event, a proof of identity, or a certification of academic achievement.

NFTs are usually created and initially released by their creators, after which they can be traded on secondary markets. This model also allows for the original creators to earn royalties from secondary market sales.

In cases where NFTs are used as proof of academic qualifications, driving licenses, or identity, they are not exchangeable, preserving their unique and specific purpose. This innovative technology is reshaping the way we think about ownership, rights, and artistic expression in the digital age, offering a professional yet engaging approach to the world of digital assets.