What is Non-Fungible Token (NFT)?
Let's find out Non-Fungible Token (NFT) meaning, definition in crypto, what is Non-Fungible Token (NFT), and all other detailed facts.
Non-Fungible Tokens (NFTs) are unique digital assets that represent real objects like music, art, in-game items, etc., and they cannot be copied, substituted, or subdivided. NFTs fall into the category of cryptocurrencies. However, traditional cryptocurrencies are fungible, meaning that they are interchangeable and all units of a specific cryptocurrency are the same. That’s not the case with NFTs, as mentioned before, each token is unique.
NFTs are used as digital proof of ownership of things. For example, one of the most popular NFT collections is Bored Ape Yacht Club (BAYC) which consists of 10,000 unique bored Ape NFTs that are stored on the Ethereum blockchain. When you buy a Bored Ape, it becomes your Yacht Club membership card and grants you access to members-only benefits.
Though note that in some rare cases, fungible tokens like Ethereum (ETH) can also become non-fungible due to some past activity. For instance, if a certain amount of ETH is used to pay for illegal things or activities, these tokens would become less fungible because they might not be accepted by certain exchanges.
Additionally, a nonce can be referred to as a unique number whose main purpose is to secure communication.<\/p>\n<p>Since more than one cryptocurrency transaction can be sent via Ethereum, <strong>a nonce allows it to determine which cryptocurrency transaction should be given priority processing<\/strong>. If nonces were disabled, the platform could experience some issues in account balance transfers due to conflicting transactions.<\/p>\n<p>The mainnet of Ethereum ensures that transactions with lower nonce values are processed before transactions with higher nonce values.<\/p>\n<p>Let’s have a look at an example to understand this better. For instance, one broadcasted transaction holds a value of 3, another broadcasted transaction holds a value of 4. In this case, the transaction with the value of 3 will be processed first.<\/p>\n<p>The main drawback that comes with nonces is that <strong>it can make an entire sequence of transactions static<\/strong>. This means that if an issue occurs with a transaction of a lower value nonce then every other transaction behind it is stuck.<\/p>\n<p>Some smart contract platforms utilize nonces for other uses as well. For example, <strong>Ethereum users can also utilize nonces to cancel or speed up a transaction<\/strong>. In order to cancel a transaction, they could make a new transaction with the same nonce value and send it to their own <a href=https://www.bitdegree.org/"//crypto//learn//crypto-terms//what-is-wallet/">wallet. However, there’s no guarantee that it won’t cancel another transaction that has the same nonce value.<\/p>\n<p>In order to speed up a transaction, users could make a new transaction with the same nonce value and send it again. Only this time, they should increase the gas price before sending it off.<\/p>\n<p> <\/p>","definition":"a method of securing communication on platforms that utilize smart contracts.","status":"published","meta_title":"What is Nonce? Definition & Meaning | Crypto Wiki","meta_description":"Nonce meaning: Nonce - a method of securing communication on platforms that utilize smart contracts.","meta_keywords":null}" :prev-section="{"id":895,"wikipedia_url":"https:\/\/en.wikipedia.org\/wiki\/Fungibility#Cryptocurrency","level":"easy","author_id":1,"created_at":"2023-06-19T06:59:01.000000Z","updated_at":"2024-01-09T13:41:58.000000Z","slug":"what-are-non-fungible-assets","title":"What are Non-Fungible Assets?","section":"N","keyword":"Non-Fungible Assets","content":"<p>In the world of crypto, the term “<strong>non-fungible assets<\/strong>” is typically used to refer to <a href=https://www.bitdegree.org/"//crypto//learn//crypto-terms//what-is-non-fungible-token-nft/">NFTs. The phrase “non-fungible” describes an NFT or a single indivisible object. Different from other scenarios when a token describes an actual virtual asset or contract, an NFT describes the <strong>indivisible virtual item.<\/strong><\/p>\n<p>In essence, fungibility determines if something is unique or not. It is an essential component of a digital asset’s identity that can evaluate what parts they might need to take on.<\/p>\n<p>The main differences between non-fungible assets (NFAs) and NFTs:<\/p>\n<ul>\n<li><strong>Single participant.<\/strong> NFAs have only one participant, apart from the issuer, that can hold units of this asset.<\/li>\n<li>Fixed identity. The identity of the participant is linked with the asset, therefore, it can’t be changed. There is an unbreakable link between the asset and the identity of the participant for whom it was issued.<\/li>\n<\/ul>\n<p>So, NFAs and NFTs are definitely not the same. For instance, NFAs can be used to enable contact <a href=https://www.bitdegree.org/"//crypto//learn//crypto-terms//what-is-baking/">baking on a blockchain. This is the case because the technology guarantees a completely secure and compliant translation of values <strong>from each client's account<\/strong> (which is implemented as its own distinct digital asset that only the client can retain) to the target account.<\/p>\n<p>Besides, NFAs differ from NFTs in that they can be held by anybody and can reflect more than one \"<strong>item<\/strong>.\" This is a game-changer for certain organizations. Storage certificates, for instance, may now be supplied to customers safely and without the danger of tampering.<\/p>","definition":"The term non-fungible assets refers to non-fungibility within a group of similar assets being produced by a single party.","status":"published","meta_title":"What are Non-Fungible Assets? Definition & Meaning | Crypto Wiki","meta_description":"Non-Fungible Assets meaning: Non-Fungible Assets - The term non-fungible assets refers to non-fungibility within a group of similar assets being produced by a single party.","meta_keywords":null}" :model="{"id":525,"wikipedia_url":"https:\/\/en.wikipedia.org\/wiki\/Non-fungible_token","level":"easy","author_id":1,"created_at":"2023-06-19T06:59:00.000000Z","updated_at":"2023-12-10T10:53:00.000000Z","slug":"what-is-non-fungible-token-nft","title":"What is Non-Fungible Token (NFT)?","section":"N","keyword":"Non-Fungible Token (NFT)","content":"<p>Non-Fungible Tokens (NFTs) are unique <a href=https://www.bitdegree.org/"//crypto//learn//crypto-terms//what-is-digital-asset/">digital assets<\/strong><\/a> that represent real objects like music, art, in-game items, etc., and they <strong>cannot be copied<\/strong>, substituted, or subdivided. NFTs fall into the category of cryptocurrencies. However, traditional cryptocurrencies are <a href=https://www.bitdegree.org/"//crypto//learn//crypto-terms//what-is-fungible/">fungible, meaning that they are <strong>interchangeable<\/strong> and all units of a specific cryptocurrency are the same. That’s not the case with NFTs, as mentioned before, each token is unique.<\/p>\n<p>NFTs are used as digital proof of ownership of things. For example, one of the most popular NFT collections is <a href=https://www.bitdegree.org/"https:////en.wikipedia.org//wiki//Bored_Ape/" target=\"_blank\" rel=\"nofollow noindex noopener\"><strong>Bored Ape Yacht Club (BAYC)<\/strong><\/a> which consists of <strong>10,000 unique bored Ape NFTs<\/strong> that are stored on the Ethereum blockchain. When you buy a Bored Ape, it becomes your Yacht Club membership card and grants you access to members-only benefits.<\/p>\n<p>Though note that in some rare cases, <strong>fungible tokens<\/strong> like Ethereum (ETH) can also become non-fungible due to some past activity. For instance, if a certain amount of ETH is used to pay for illegal things or activities, these tokens would become <strong>less fungible<\/strong> because they might not be accepted by certain exchanges.<\/p>","definition":"a unique digital asset stored on a blockchain that represents real objects and that cannot be copied, substituted, or subdivided.","status":"published","meta_title":"What is Non-Fungible Token (NFT)? Definition & Meaning | Crypto Wiki","meta_description":"Non-Fungible Token (NFT) meaning: Non-Fungible Token (NFT) - a unique digital asset stored on a blockchain that represents real objects and that cannot be copied, substituted, or subdivided.","meta_keywords":null,"author":{"id":1,"user_id":1,"created_at":"2023-05-03T14:30:55.000000Z","updated_at":"2023-05-11T07:18:20.000000Z","title":"Editor-In-Chief","slug":"aaron-s-editor-in-chief","description":"<p>Having completed a Master’s degree on Economics, Politics & Culture for the East Asia region, Aaron has written scientific papers with a comparative analysis of the differences between US’ Western and Japan’s Collective forms of capitalism, 1945-2020.<\/p>\n<p>With close to a decade of experience in the FinTech industry, Aaron understands all of the biggest issues and struggles that crypto enthusiasts face. He’s a passionate analyst who is concerned with data-driven and fact-based content, as well as that which speaks to both Web3 natives and industry newcomers.<\/p>\n<p>Aaron is the go-to person for everything and anything related to digital currencies. With a huge passion for blockchain & Web3 education, Aaron strives to transform the space as we know it, and make it more approachable to complete beginners.<\/p>\n<p>Aaron has been quoted by multiple established outlets, and is a published author himself. Even during his free time, he enjoys researching the market trends, and looking for the next supernova.<\/p>","user":{"id":1,"first_name":"Aaron","last_name":"S.","email":"aaron@bitdegree.org","email_sanitized":"aaron@bitdegree.org","email_verified_at":"2023-12-01T09:40:20.000000Z","must_verify_email":false,"is_registered_with_wallet":false,"status":"active","country":"LT","last_connected_ip":"88.119.132.125","image_id":2641,"referral_token":"05TMu2NysXOCn525","referred_by":null,"created_at":"2023-05-03T14:30:55.000000Z","updated_at":"2024-01-09T15:22:21.000000Z","full_name":"Aaron S."}}}" :chapter-list="[{"id":1,"title":"Blockchain","slug":"blockchain","updated":null,"chapter":"crypto\/assets\/crypto-book\/chapters\/learn-blockchain.jpg","chapter_simple":"crypto\/assets\/crypto-book\/chapters-simple\/blockchain-101.jpg","rating":100,"sections":[{"chapter_id":1,"order":1,"slug":"what-is-blockchain","title":"What is the Blockchain?","status":"published","modified_content":null},{"chapter_id":1,"order":2,"slug":"decentralized-blockchain","title":"Anonymous & Decentralized Blockchains: The Cornerstone of Crypto","status":"published","modified_content":null},{"chapter_id":1,"order":3,"slug":"blockchain-transaction","title":"What is a Blockchain Transaction in Crypto?","status":"published","modified_content":null},{"chapter_id":1,"order":4,"slug":"crypto-fees","title":"The Different Types of Crypto Fees Explained","status":"published","modified_content":null},{"chapter_id":1,"order":5,"slug":"what-is-bridging-in-crypto","title":"The Key Notion Behind the Concept of Bridging in Crypto","status":"published","modified_content":null},{"chapter_id":1,"order":6,"slug":"types-of-blockchains","title":"Different Types of Blockchains: What to Look Out For?","status":"published","modified_content":null}]},{"id":2,"title":"Cryptocurrencies","slug":"cryptocurrencies","updated":null,"chapter":"crypto\/assets\/crypto-book\/chapters\/learn-cryptocurrencies.jpg","chapter_simple":"crypto\/assets\/crypto-book\/chapters-simple\/cryptocurrencies-101.jpg","rating":100,"sections":[{"chapter_id":2,"order":1,"slug":"what-is-a-cryptocurrency","title":"What is a Cryptocurrency?","status":"published","modified_content":null},{"chapter_id":2,"order":2,"slug":"how-does-cryptocurrency-work","title":"How Does Cryptocurrency Work?","status":"published","modified_content":null},{"chapter_id":2,"order":3,"slug":"is-cryptocurrency-a-good-investment","title":"Is Cryptocurrency a Good Investment? 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Mining?","status":"published","modified_content":null},{"chapter_id":9,"order":3,"slug":"what-is-staking-crypto","title":"An Advanced Look into What is Staking Crypto","status":"published","modified_content":null},{"chapter_id":9,"order":4,"slug":"what-is-proof-of-stake-vs-proof-of-work","title":"Proof-of-Work VS Proof-of-Stake: The Differences That Matter","status":"published","modified_content":null},{"chapter_id":9,"order":5,"slug":"what-is-crypto-mining-rig","title":"Crypto Mining Rig: What It is and How to Build One?","status":"published","modified_content":null}]},{"id":10,"title":"Crypto Terms","updated":false,"chapter":"crypto\/assets\/crypto-book\/chapters\/crypto-101-glossary.jpg","chapter_simple":"crypto\/assets\/crypto-book\/chapters-simple\/crypto-glossary-101.jpg","rating":100,"sections":["A","B","C","D","E","F","G","H","I","J","K","L","M","N","O","P","Q","R","S","T","U","V","W","X","Y","Z"]}]" current-chapter="N" current-section="what-is-non-fungible-token-nft">