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Non-fungible tokens (NFTs) are unique digital files which are impossible to replicate. Each NFT contains computerized code and is cryptographically verified to substantiate the ownership of music, art, licensing or even real estate assets, whether digital or physical.
Since NFTs are built on smart contracts using an underlying blockchain protocol such as Ethereum, Solana or Polygon, it’s possible to distinguish the provenance of assets, democratize identity management and fractionalize ownership among multiple owners.
Unlike NFTs, fungible tokens (such as fiat currency or bitcoins) are indistinguishable, meaning one can be exchanged for another.