What is an NFT?

What Is An NFT? – Forbes Advisor What Is An NFT? Non-Fungible Tokens Explained Editorial Note: We earn a commission from partner links on Forbes Advisor. Commissions do not affect our editors' opinions or evaluations. Non-fungible tokens (NFTs) seem to be everywhere these days.

What is an NFT (nonfungible token)?

What is an NFT? NFT stands for “nonfungible token,” which, according to Investopedia, are “assets on blockchain with unique identification codes and metadata that distinguish them from each other.” The keyword in that definition is "unique."

How is NFT different from cryptocurrency?

How Is an NFT Different from Cryptocurrency? NFT stands for non-fungible token. It’s generally built using the same kind of programming as cryptocurrency, like Bitcoin or Ethereum, but that’s where the similarity ends. Physical money and cryptocurrencies are “fungible,” meaning they can be traded or exchanged for one another.

Are NFTS exchangeable?

While NFTs themselves are exchangeable (in the sense that you can buy and sell NFTs from/ to other people) the unique traits of each NFT mean it has its own distinct value. For instance, you couldn’t trade a shiny Charizard Pokemon card for a “Shoeless” Joe Jackson, 1909 American Caramel baseball card like-for-like.