NFT (icon)

NFT, the hottest trend in crypto

Future of Cryptocurrency ūüöÄ 2022 ⟶ NFT Tokens

Non-Fungible Tokens (NFT)

A non-fungible token (NFT) is an idiosyncratic and non-interchangeable unit of data stored on a digital ledger (blockchain). NFTs can be associated with reproducible items such as photos, videos, 3D models, audio, and other types of digital files as unique items (analogous to a certificate of authenticity). NFTs use blockchain technology to provide a public proof of ownership. Copies of the original file are not restricted to the owner of the NFT, and can be copied and shared like any file. The lack of interchangeability (fungibility) distinguishes NFTs from blockchain cryptocurrencies, such as Bitcoin.

NFTs have drawn criticism with respect to the energy cost and carbon footprint associated with validating blockchain transactions as well as its frequent use in art scams. Further criticisms challenge the usefulness of establishing proof of ownership in an unregulated market based on digital files that are easy to copy.