What is NFT?

NFT literally means non-fungible token or irreplaceable token. You can think of an NFT as a certified digital item that only you own! It has its own serial number and its uniqueness is easily verifiable in a network accessible to all - the blockchain. This is precisely why NFTs are an irreplaceable asset - each token is unique and has its own value. This is exactly what distinguishes it from cryptocurrencies, which are fungible and can be exchanged for other virtual currencies or different financial assets (just like traditional paper money).

Any digitized files can be traded in NFT form. These are collectible cards, characters or weapons in online games or modern online art (GIFs or wallpapers, which are increasingly seen on the profile pictures on social networks of famous people); old or special edition coins, paintings, 3D sculptures, original song recordings, drafts or first copies of literary works, newspapers or magazines, football teams, pennants, trophies, flags and many other items. Just as old and expensive works are unique because they are a one-of-a-kind item, the NFT variant of a popular video, for example, also becomes one-of-a-kind, even having its own certificate to prove its uniqueness.

Blockchain, on the other hand, is a shared, unified and immutable database on the Internet that facilitates the process of recording transactions and tracking assets. The assets recorded in it can be tangible (real estate, car, money) or intangible (intellectual property, patents, copyrights).

Virtually anything of value can be tracked and traded on the blockchain network, reducing risk and cost for all involved. As each transaction is made, it is recorded as a "block" of data. Each block is linked to the ones before and after it. Transactions are "blocked" together in an irreversible chain: the blockchain. For this reason, the network cannot be tampered with or altered once the data is recorded. It is also the technology behind all cryptocurrencies.