NFT (Non-Fungible Token)

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An NFT, or Non-Fungible Token, is a unique digital asset that represents ownership of a specific item or piece of content, recorded on a blockchain. Unlike cryptocurrencies such as Bitcoin or Ethereum, which are “fungible” (meaning one unit is interchangeable with another), each NFT possesses distinct characteristics and is not directly replaceable with another NFT on a one-to-one basis.

It can be compared to a digital certificate of authenticity and ownership for items such as digital art, collectibles, virtual land, music, videos, or even in-game items. The blockchain technology underlying NFTs ensures that the ownership record is transparent, verifiable, and immutable. This uniqueness and verifiable scarcity are what give NFTs their potential value. They have opened up new avenues for creators to monetize their digital work directly and for collectors to own and trade verifiably scarce digital items in a secure and transparent manner, revolutionizing concepts of digital ownership and intellectual property.

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