Non-Fungible Token (NFT)
A Non-Fungible Token (NFT) is a type of cryptographic token that represents something unique and non-interchangeable. Unlike most cryptocurrencies, which are fungible tokens, NFTs are not interchangeable because each one has its own distinct characteristics or attributes. This makes them similar to physical collectibles in terms of uniqueness and scarcity. NFTs can be used for a variety of applications ranging from digital art collections, gaming items, crypto cards, virtual real estate ownership records, music recordings and more.
The technology behind an NFT is based on blockchain technology like other cryptocurrencies such as Bitcoin or Ethereum. It creates a record of ownership stored on the blockchain ledger that cannot be altered by anyone else but the rightful owner who holds the private key associated with it. Transactions involving NFTs take place in smart contracts which ensure secure transactions between two parties without any third party intervention or middleman involved in the process.
One important thing to note about NFTs is their high transaction costs compared to other cryptocurrencies due to their complexity and all related features included within them. However, this cost may vary depending on different factors like network congestion and gas prices during certain times of day/week etc., so make sure you do your research before investing into any particular project using this kind of asset class!
