The Non-Fungible Token (NFT) is a cryptographic token that stands for an asset seen as unique. Rendering assets as NFTs is the tokenization of such that allows for the assets to act as verifiable proofs of authenticity and ownership within the blockchain.
It must be noted that NFTs cannot be interchanged with each other. To understand this, the term “Fungible” must also be expounded. Fungibility pertains to the property of an asset whose individual units is naturally interchangeable and is challenging to distinguish from each other. Take fiat currencies for example. These assets are fungible in that these can be interchanged as they can hold equivalent value.
NFTs, on the other hand, can be used by what are called Decentralized Applications (DApps) to be able to create and assume ownership of unique digital items and collectibles. And despite the fact that NFTs can be traded in open marketplaces, with the capability of connecting buyers with sellers, each is considered unique.