non-fungible token

Syllable breakdown

Dictionary meaning

a unique cryptographic token recorded on a blockchain that represents ownership of a specific digital or physical asset — such as a piece of digital art, a music recording, a collectible, a game item, or a certificate of authenticity — in a way that is publicly verifiable and cannot be replicated; unlike cryptocurrencies such as Bitcoin, where each unit is interchangeable with any other unit of equal value, each NFT is distinct and represents something specific; NFTs gained extraordinary cultural and commercial prominence in 2021 when digital artworks sold for tens of millions of dollars and major brands, sports leagues, and celebrities launched NFT collections; the market subsequently experienced dramatic price declines, prompting debate about the long-term value proposition of NFTs beyond speculation and their environmental footprint when minted on proof-of-work blockchains