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.
- Creator name recognition (usually high).
- The time it took to create the NFT.
- The visual attributes of the NFT itself.
NFTs are stores of value. Like art, they are one-of-a-kind.