What does NFT mean?
NFT is an acronym for non-fungible-token.
First things first: What is “non-fungible”?
Simply put, a fungible asset is something that can be exchanged for another item of identical value. The best examples are cash and commodities: every dollar is the same as every other dollar; likewise, every euro, every peso, every bitcoin and every pound of solid gold.
A non-fungible asset is anything else, from real estate to baseball cards to art. (You can’t swap a Rembrandt for a Warhol and call it a day.)
Where does the “token” come in?
A token refers to the process of minting of the item onto the blockchain. A non-fungible token acts as a digital certificate of authenticity, which functions like a property deed or receipt—it proves that ownership of a certain digital item is unique to one buyer. The NFT can represent anything: photography, animation, music, literature, and so on.
The NFT’s proof of provenance (who/where it came from) or ownership (who currently owns it) can’t be altered or duplicated, but it can be traded or resold by its owner. These transactions happen via the blockchain, where it is permanently recorded.