NFT
A non-fungible token (NFT) is a unique digital identifier that's recorded on the blockchain, which is used to certify authenticity and ownership.
Fungibility is an economics term that describes the interchangeability of certain goods.
An NFT is a unit of data, stored on a type of digital ledger called a blockchain, which can be sold and traded.
It can be associated with a particular digital or physical asset such as images, art and music.
NFTs have the potential for several use cases. For example, they are an ideal vehicle to digitally represent physical assets like real estate and artwork.
Because they are based on blockchains, NFTs can also work to remove intermediaries and connect artists with audiences or for identity management. NFTs can remove intermediaries, simplify transactions, and create new markets.
An NFT is unique; it is a one-of-a-kind piece of code, stored and protected on the blockchain.
Some investors have had huge success with NFTs, while others have seen the value of their purchased token decline. As such, you need to remember that there are no guarantees that you will make a profit when you buy NFTs.
Non-fungible tokens, which use blockchain technology just like cryptocurrency, are generally secure. The distributed nature of blockchains makes NFTs difficult (although not impossible) to hack.
One security risk for NFTs is that you could lose access to your non-fungible token if the platform hosting the NFT goes out of business.