Non-Fungible Tokens (NFT) are used to represent a digital asset (photos, videos, audio, and other digital files), allows users to buy and sell ownership of these digital items and are a unit of data stored on the blockchain, certifying the asset to be unique and therefor not interchangeable/irreplaceable/not fungible.
Fungibility in cryptocurrencies like Bitcoin means that they can be traded or exchanged for one another, as 1 BTC will always be equal in value to any other Bitcoin. An NFT representing a unique asset will have a different value to another NFT and thus they are not mutually interchangeable.
Uses for NFT’s:
- Digital Art
- Real Estate