NFT stands for non-fungible token, and represents another type of blockchain-based asset
Non-fungible means that the token is unique and cannot be duplicated, substituted or subdivided
NFTs can digitally represent the ownership of any asset, from online artwork to physical real estate like a specific apartment or house
While security tokens represent identical fractions of an asset, NFTs represent an entire unique asset
All tokens are not the same
Non-fungible tokens (or NFTs) have recently taken the digital art world by storm, and received plenty of negative press from certain parties in the process.
Some people just don’t understand why anyone would want to own an NFT version of an artwork, when they can take a perfect copy of the original digital image.
But there is far more to NFT technology than an endless stream of slightly different (and easily bootlegged) animal characters.
Non-fungible simply means that a token is unique and cannot be directly exchanged for an equivalent. This is in contrast to fungible tokens, such as Bitcoin, where one BTC has the same value as any other BTC.
This enables them to represent any unique asset, from a procedurally generated digital image to a physical artwork or piece of real estate.
Being able to tokenize these real-world assets onto the blockchain makes buying, selling and trading more efficient while reducing the potential for fraud.