Non-Fungible Tokens (NFTs)
In the simplest terms, non-fungible tokens, or NFTs, are one-of-a-kind cryptographic assets that exist on a blockchain and cannot be reproduced. Due to their unique nature, NFTs cannot be traded or exchanged at equivalency. While fungible tokens, such as cryptocurrencies, are identical to each other and, therefore, mutually interchangeable, no two non-fungible tokens are not the same. In this way, non-fungible tokens enable the opportunity to generate one-off, highly valuable digital assets, such as digital artwork or digital fashion items, that can be tailored to consumer preferences.
Presenting many opportunities, NFTs can be also used to represent real-word items, such as artwork or real estate. By converting a physical asset into a digital one, non-fungible tokens remove intermediaries and simplify transactions, which leads to increased efficiency and streamlined processes. As they cannot be copied or substituted, NFTs also reduce the probability of fraud.