NFT Projects

What Is An NFT?

NFT stands for 'non-fungible token'. When something is fungible, like a dollar bill, it is equivalent to, and can thus be exchanged for, any other dollar bill. In contrast, a non-fungible token is a unique asset in digital form that cannot be exchanged for any other NFT. This means that every NFT is a 'one-of-a-kind' item. NFTs are transferred from one owner to another using blockchain technology, which creates a digital trail from the seller to buyer that verifies the transaction. This encodes the unique ownership rights to the buyer (new owner).

The physical world counterpart would be a unique collectible asset such as a piece of art, for which you might have a certificate of ownership attesting to its authenticity. The NFT with its blockchain technology replaces the need for certificates of ownership. There are even some NFTs that use blockchain technology to create a digital ownership certificate for a unique physical asset, though this is currently not common.

NFTs became a popular investment in 2021, even though they’ve been around since 2014. As cryptocurrency investing exploded, so did the idea of taking certain digital assets and selling them to investors to buy online.