Non-Fungible Token (NFT)

A non-fungible token, usually shortened to NFT, is a blockchain token that is unique and cannot be swapped one-for-one with another token of the same kind. Each NFT carries an identifier and a record of its current owner, plus metadata linking it to an image, video, ticket, domain name or in-game item. Because ownership is recorded on a public ledger, anyone can verify who holds a given token and trace its full transfer history. Holding an NFT proves control of that on-chain entry. It does not by itself transfer copyright, and the file it points to often lives on ordinary web servers or on IPFS rather than on the chain itself. Secondary markets for NFTs are frequently illiquid and prices can move sharply.