NFT – non-fungible token. It is a piece of data stored on a blockchain, and it is used to record and track the ownership of a unique asset. Non fungible means that the assets are not interchangeable with other assets and have unique properties, which characterize them and make them different from one another. On crypto currency markets, the majority of tokens available are fungible tokens. To contrast them with non-fungible tokens, fungible tokens have the same characteristics as other another, and can be replaced by token of the same kind. To help to understand this:  1BTC can be replaced by other 1BTC. Although, it would not be exactly the same BTC, it has the same value and it still means

that you have in your wallet exactly 1BTC. The main assumption of non-fungible tokens is to be exactly the opposite to. Thus, one NFT of some kind cannot be the same as another NFT.

Currently most popular network for NFTs is Ethereum. This creates the network most secure and decentralized, but at the same time the gas prices are increasing. As a solution to this problem new blockchains were introduced to the world, e.g. Polygon (Matic), Solana, Cardano, Tron, Tezos.

Let’s take a closer look at some of the properties:

• Uniqueness – each NFT contain information about properties of the token itself and about the asset. To give examples: a picture could contain data about pixels and dimensions, NFTs in some game could describe items used in that game (swords, spaceships, etc.) and contain details that would allow the users to establish ownership of those items.
• Ownership – each token contain proof of ownership, and can be verified easily.
• Traceability – each NFT transaction is recorded on a blockchain and contain full history of the token. That means the ownership of the token can be verified and established together with information such as: when the token was created, and whet it was transferred and to whom. This information is very important for both buyers and sellers especially these days due to high amount of forgery attempts, and increasing amount of lawsuits, which might be very expensive and take years. Hence, NFT could provide a solution to all those issues. The ownership can be verified in seconds, without the need for lawyers or solicitors. The only possibility where some NFT ownership could be jeopardized, would be if the whole blockchain on which the NFT is stored was hacked. Possibility if that could be done is under dispute and we won’t discuss it in this article.

What a blockchain is, will be explained later in the article, so please keep reading.

• Rarity – it speaks for itself. On this planet, whatever is rare it is valuable.
• Indivisibility – NFT cannot be divided or split.   
• Immutability – this quality is inherent to all blockchain tokens. Information contained in the tokens is resistant to unwanted changes and tampering, and cannot be easily compromised. This asset has the tendency to make all the crypto-currency mor trustworthy.
• Programmability – NFTs can contain code and can be programmed.

This gives NFTs the advantage over centralized assets. Non-fungible tokens combine some of the best traits of decentralized blockchain technologies. Also, the possibilities in this field are endless, but require more research and even newer technological solutions. We see exponential increase in the use of NFTs, but there is still a long way to go before this amazing technology and its application will be widely implemented.