Crypto Terms: Letter N

What is Non-Fungible Token (NFT)?

Non-Fungible Token (NFT) MEANING:
Non-Fungible Token (NFT) - a unique digital asset stored on a blockchain that represents real objects and that cannot be copied, substituted, or subdivided.
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Let's find out Non-Fungible Token (NFT) meaning, definition in crypto, what is Non-Fungible Token (NFT), and all other detailed facts.

Non-Fungible Tokens (NFTs) are unique digital assets that represent real objects like music, art, in-game items, etc., and they cannot be copied, substituted, or subdivided. NFTs fall into the category of cryptocurrencies. However, traditional cryptocurrencies are fungible, meaning that they are interchangeable and all units of a specific cryptocurrency are the same. That’s not the case with NFTs, as mentioned before, each token is unique.

NFTs are used as digital proof of ownership of things. For example, one of the most popular NFT collections is Bored Ape Yacht Club (BAYC) which consists of 10,000 unique bored Ape NFTs that are stored on the Ethereum blockchain. When you buy a Bored Ape, it becomes your Yacht Club membership card and grants you access to members-only benefits.

Though note that in some rare cases, fungible tokens like Ethereum (ETH) can also become non-fungible due to some past activity. For instance, if a certain amount of ETH is used to pay for illegal things or activities, these tokens would become less fungible because they might not be accepted by certain exchanges.