Non-fungible tokens (NFTs) are unique, digital assets who’s ownership is secured and verified on the blockchain.
Non-Fungible Tokens, or NFTs, represent a unique digital item that lives on the blockchain. We can think of NFTs as new models of ownership on the internet.
Fungible vs Non-Fungible Tokens
In basic terminology, when a token or other type of asset is fungible it simply means that it is easily interchangeable. An example would be fiat (U.S. Dollar) and crypto currencies (ETH). A $5 bill has identical features and value to that of another $5 bill. Fungible assets serve as a medium of exchange and are essential for economies and marketplaces.
When a token is non-fungible its characteristics are unique and thus it isn’t easily interchangeable. An example would be a house. Each house has at least 1 unique trait that makes it different from one another. Whether it’s the location of where it was built or the material that was used to build it.