A Non-Fungible Token (NFT) is a distinct digital identifier recorded on a blockchain, representing ownership of a digital or physical asset. NFTs act as digital certificates of authenticity, ensuring the asset is unique and cannot be copied, replaced, or altered. They are typically built on blockchain networks like Ethereum and follow the ERC-721 token standard.
NFTs are designed to be:
i) cryptographically verifiable,
ii) unique or scarce, and
iii) easily transferable.
NFTs can be traded on specialized platforms like Rarible and Opensea. Blockchain technology ensures easy verification of ownership and facilitates token transfers between owners. For instance, artists can embed their signatures in the NFT’s metadata to authenticate their artwork. Additionally, NFTs can be programmed to provide artists with a percentage of any future sales.
