Non-fungible tokens (NFTs) are a special class of assets on the blockchain characterized by being unique and non-interchangeable with one another for equal value. An NFTs is different from cryptocurrency in that it is difined by metadata that builds-in a role, function, and value that are unique to it. The creation of Bitcoin introduced the concept of trustless, digital scarcity. Before it, the cost of digitally copying something was next to nothing. With the advent of blockchain technology, programmable digital scarcity has become possible – letting us map the digital world to the real world. Non-fungible tokens (NFTs), often referred to as crypto collectibles, expand this idea. Unlike cryptocurrencies, where each token is equal, non-fungible tokens are unique and limited in quantity. NFTs are a key building block in a new, blockchain-powered digital economy.
Numerous projects have experimented with NFTs in a variety of use cases, including gaming, digital identity, licensing, certificates, and fine art. What’s more, NFTs even allow for fractional ownership of high-value items. NFTs have become much easier to issue, and we’re seeing increasing amounts minted daily. This article will dive into what NFTs are, what they can be used for, and how a game called CryptoKitties congested the Ethereum blockchain in late 2017.