A non-fungible token (NFT) is a digital token that is stored on a blockchain and is unique, unlike fungible tokens such as cryptocurrencies that can be exchanged with each other. Each NFT represents a digital object, such as a piece of art, a music file, or a trading card game, and contains unique identifying information that distinguishes it from other NFTs.

It makes sense to store proofs of ownership of digital objects via NFTs on a decentralized blockchain, as this provides the ability to ensure the authenticity and immutability of the object’s ownership and history. Because blockchain transactions are immutable and typically publicly accessible, an NFT owner can be sure that the object they own is authentic and that they are the rightful owner. This also provides a way to estimate and sell the value of digital objects by transferring ownership based on NFTs, similar to traditional ownership transfers for physical objects.