What is a NFT?

NFT is the abbreviation for Non-Fungible Token: Non-Fungible Token.

A token is the digitalised form of an asset. The token therefore has a certain value or function. At the same time, real assets such as real estate or music rights can also be tokenised by transferring the associated rights and obligations to the token. This means that the ownership is digitally mapped and is thus tradable.

A token can be both fungible (exchangeable) and non-fungible (non-exchangeable). Basically, "non-fungible" in this sense only means that it is a unique digital asset that cannot be exchanged one-to-one for another.

The situation is different with bitcoins, for example: Bitcoins can be exchanged at will because they always have the same value. It is the same with cash: a ten-euro note has the same value as another ten-euro note.

Non-fungible tokens, on the other hand, can be compared to art objects such as paintings. These have an individual value. When you exchange them for each other, you usually don't get the same value that you pass on.