NFT (Non-Fungible Token)
A unique digital token that proves ownership of digital content.
An NFT (Non-Fungible Token) is a unique cryptographic token on the blockchain that represents ownership of specific digital (or physical) content. Unlike Bitcoin (which is fungible — every BTC is identical), each NFT is unique.
NFT applications:
•Digital art — CryptoPunks, Bored Ape Yacht Club
•Gaming — in-game items, characters
•Music and video content
•Virtual land in metaverses (Decentraland)
•Collectible cards
NFT boom 2021: million-dollar sales, celebrities, mass entry. Collapse 2022-2023: 90%+ drop in value of most NFTs.
Core issue: an NFT proves ownership of the token, not necessarily the content or rights that come with it.