Non-fungible token

A non-fungible token (NFT) is a way of proving that a digital item is the only one of its kind in existence. Therefore it cannot be copied or reproduced without the owner's knowledge and consent.^[1] They can be thought of as a digital certificate of authenticity. NFTs are bought and sold online. They claim to be digital proof of ownership of a given item. NFTs are securely recorded on a blockchain.^[2]

An illustration of a non-fungible token (NFT) as a piece of code. This piece of code contains a list of parameters and all files linked to the NFT. These parameters contain important information that identify the NFT.

They are called non-fungible because each one is the only one. This is different from cryptocurrency and other types of money, in which each coin or each dollar or each euro is exactly the same as all the other coins, dollars, and euros.

Computers work hard to make and trade NFTs. This means they need a lot of energy, which comes from fuel. In this way, some scientists think NFTs cause pollution and harm the environment.^[1]

References

1. "Non-fungible tokens aren't a harmless digital fad – they're a disaster for our planet | Adam Greenfield". the Guardian. 2021-05-29. Retrieved 2021-06-02.
2. "Where's the Future of NFT Headed?". Retrieved 2021-10-12.