A non-fungible token (NFT) is a cryptographic token that is unique because it has its own characteristics and customizable options. Consider NFT like owning a one-of-a-kind piece of art. NFTs are unique digital assets, which in turn generate value.
The difference between NFTs and Cryptocurrency
-Say for instance two individuals obtain a bitcoin each which are replicas of one another. It is because they're replicas that they hold the same value, making them exchangeable.
-NFTs differ because each is unique. There will never be two interchangeable pieces. So although NFTs and Bitcoin are both digital assets, they differ in their uniqueness (meaning each token will have an individual value).
NFT and the blockchain
-With blockchain technology, a LEDGER entry gets made every time a purchase is made through cryptocurrency. With NFT there is also a ledger entry, however, with this entry, an address to the file is noted establishing ownership.
-When an NFT transfer occurs with a second party through the blockchain, a ledger entry is also made containing a personal code representing the NFT transfer. This ensures the owner of the NFT is able to check on it at all times. NFT put on blockchain makes digital ownership simpler & easy to identify.
