A non-fungible token (NFT) is a unit of data stored on a digital ledger, called a blockchain, that certifies a digital asset to be unique and therefore not interchangeable. NFTs can be used to represent items such as photos, videos, audio, and other types of digital files. Access to any copy of the original file, however, is not restricted to the buyer of the NFT. While copies of these digital items are available for anyone to obtain.
NFTs are tracked on blockchains to provide the owner with proof of ownership that is separate from copyright. NFTs begin to make more sense as collectibles that could potentially grow in value over time in a world that is shifting increasingly online.
Unlike other online property, which can be modified or reproduced, NFTs utilize blockchain technology to track ownership and to ensure that each piece of content is verifiably unique and indivisible.
One major application: digital art. Digital art creators are able to use the technology to retain ownership of their work online because blockchain designates a particular piece as the digital “original.”
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