Non-Fungible Token (NFT)

Definition

A unique cryptographic token recorded on a blockchain that represents ownership of a specific digital or physical asset, such as artwork, music, collectibles, or virtual real estate. Unlike fungible tokens (such as cryptocurrencies), each NFT is distinct and cannot be exchanged on a one-for-one basis with another. NFTs have created new models for digital asset ownership, creator royalties, and provenance verification, though their market valuations have proven highly volatile.