What is an NFT (non-fungible token)?

An NFT is a unique, non-interchangeable token on a blockchain — often used to represent digital art or any one-of-a-kind asset — as opposed to fungible tokens where every unit is identical.

"Fungible" means interchangeable: one unit of a currency is identical to any other, like one dollar for another. A non-fungible token (NFT) is the opposite — each token is unique and distinguishable, so it can represent a specific, individual asset rather than a generic quantity. The most familiar use is digital art or collectibles, where the NFT records verifiable, on-chain ownership of a particular item, letting creators be paid for their work and letting owners prove authenticity and provenance. NFTs can represent much more than art (any unique asset, membership, or right), but the essential idea is one-of-a-kind ownership recorded on a blockchain, in contrast to the interchangeable units of a normal cryptocurrency.

Go deeper:

• Non-fungible token — Wikipedia — a unique on-chain identifier certifying ownership, versus fungible tokens.