NFTs are digital assets that are unique and non-fungible. This means that another identical asset cannot replace them, and each has a distinct identity. NFTs are stored on a blockchain, a digital ledger that records all transactions chronologically and publicly. This makes them secure, transparent, and tamper-proof. They can represent anything digital, such as a piece of art, a video, or even a tweet.
This is in contrast to cryptocurrencies like Bitcoin, which are fungible, meaning each unit is equivalent to another. The key difference between an NFT and a fungible token (like Bitcoin) is that each NFT is unique, while fungible tokens are interchangeable. NFTs can represent anything from digital artwork to in-game items to digital collectibles. They can also represent physical items, such as tickets or loyalty points.
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