An NFT stands for a non-fungible token. Let's explore what it means.
What is a token?
In a nutshell, a token is a digitized and blockchain-based virtual unit that approves the ownership of a specific digital asset.
Generally speaking, you can tokenize almost anything. Most often, it can be art, goods, services, land, and more. You can transact with any toned assets with high speed and a guarantee of reliability.
What is non-fungible?
It means unique and can’t be replaced with something else. For example, crypto coins can be divided into parts, and they easily replace each other. If you send your friend 0.1 bitcoin from your wallet and he sends you 0.1 from his – you will not notice any difference, because cryptocurrencies are not unique.
The uniqueness of the NFT is that this token is indivisible, and it can not be replaced with a similar NFT (because a fully analogous token simply does not exist). In this respect, the NFT has the characteristics of a unique object in the material world.