What Is a Non-Fungible Token? Understanding NFTs

Digital art that is “non-fungible” means it is unable to be replaced by an identical item. It is not interchangeable.

Most digital art files — such as an image or document — are easily duplicated. NFTs exist on the blockchain but each one is unique. You can’t exchange them.

There are three primary metrics that contribute to the value of an NFT.

1. Creator name recognition (usually high).
2. The time it took to create the NFT.
3. The visual attributes of the NFT itself.

NFTs are stores of value. Like art, they are one-of-a-kind.