A non-fungible token 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.Simply put, a non-fungible token is a one-of-a-kind asset that lives online and is managed in a digital ledger.
The “non-fungible” part of the name means they are not mutually interchangeable and cannot be replaced or exchanged with one another.
Non-fungible tokens and their smart contracts allow for detailed attributes to be added, like the identity of the owner, rich metadata, or secure file links. The potent of non-fungible tokens to immutably prove digital ownership is an important progression for an increasingly digital world. They could see blockchain’s promise of trust-less security applied to the ownership or exchange of almost any asset.
Each NFT includes a unique identification code that’s recorded on a blockchain like Ethereum. When you buy/receive an NFT, you own the underlying code and the rights to the asset. A public record of ownership is then encoded into the blockchain, which makes it indisputable. Someone might be able to take a screenshot of the asset, but they won’t be able to copy the actual code behind it. This is a powerful protection against fraud and counterfeits.
With Proof of Work (PoW) blockchains becoming a hot topic for discussion as far as carbon footprint and eco-friendliness go, we have chosen the Eco-Friendly blockchain scaling solution of Ethereum, Polygon. To learn more about Polygon’s eco-friendliness, click here.