Non-Fungible Token (NFT)
Definition:A Non-Fungible Token (NFT) is a unique digital certificate of ownership recorded on a blockchain, used to authenticate digital artworks, collectibles, and media. Unlike cryptocurrencies (which are fungible), NFTs are one-of-a-kind and can’t be exchanged on a 1:1 basis.
In the art world, NFTs allow artists to tokenize digital works, set royalties, and sell directly to collectors on platforms like Foundation, SuperRare, and OpenSea. NFTs exploded in popularity in 2021 with sales by artists like Beeple, Pak, and Refik Anadol.
While controversial due to environmental and speculative concerns, NFTs have introduced a new mode of ownership and value in digital art markets.
