NFTs, or non-fungible tokens, are unique digital assets that are stored on a blockchain. NFTs are being used to purchase digital representations of traditional artworks, videos and photographs, and even GIFs, tweets and virtual real estate.
Unlike cryptocurrencies, NFTs are one of a kind (and not fungible) – meaning that they cannot be traded or interchanged. Think of them as a kind of digital passport – each has a singular identity that enables them to be distinguished from others. Artists can also sign their digital artwork with their own signature. NFTs provide proof of ownership with a private key and a certificate of authenticity, making the artwork truly yours.
NFTs offer a new lease of life in the space of digital finance. Financial organizations use trading and lending systems for a variety of asset categories including real estate, lending contracts, and artworks. NFTs transform this infrastructure by adding to the mix digital representations of physical assets.