NFT stands for non-fungible token. NFTs are digital tokens on the blockchain. Each token is associated with a specific digital or physical item. The token is used to record proof of authenticity as well as proof of ownership. Each token is unique because it has its own unique metadata that can never be replicated or replaced.
The NFT sector is constantly expanding, but the most popular ways NFTs are used right now include:
- Art
- Collectibles
- Virtual land in the metaverse
- Music
- Gaming items
- Photography
Let’s take art as an example, as that is a straightforward NFT use case to understand. Let’s say you have a digital or physical art piece: you can mint your art piece on the blockchain as an NFT to prove its authenticity and ownership. In this sense, an NFT can represent any item, from real estate to documents and films.