What Is An NFT? Are NFTs Unique?

NFTs Explained

An NFT stands for Non-Fungible Token which is a digital token or more popularly a digital asset. It is a piece of data that is stored digitally on the blockchain and owning an NFT means you own that data too.

The data however is coded and the unique thing about it is that every coded data is unique. In fact, the term Non-Fungible indicates that there can and will only be only one unique piece of data stored on the blockchain which can never be changed while also being distinguishable from something else.

In simple terms, two NFTs can never be the same and in case they are then you’re probably in for a scam.

When it comes to the NFT data, it can be almost anything, an image, a video, a sound, a sketch, a painting, basically anything which is unique. Each NFT is associated with a unique address and when bought the buyer gets the control of that address and they can then choose to hold onto the NFT or sell it ahead for some profit.

How is an NFT unique?

As mentioned before every NFT has a certain address associated with it called ‘token address.’ This address is the unique identity of that particular digital asset on the blockchain, which can never be changed.

Even during buying and selling the token address remains the same, the NFT simply transfers from one buyer to another. If a person owns an NFT they can rest easy on the fact that their token is unique and one of a kind no matter how many copies of it are being made.

Think of it this way, the ‘Starry Night’ painting by Vincent van Gogh resides in the Museum of Modern Art, New York City. There are millions of photos available on the internet of that very painting in fact someone might even have a painting of the same size and appearance but even then the whole world knows that it is not the original painting and also that the original painting resides safely in the Museum of Modern Art, New York City.

Except in the case of NFTs, the same scenario happens digitally on the blockchain so no matter how many copies of the token are made, with the original token address it can always be tracked to its one true owner.

Initially, NFTs were only offered on the Ethereum blockchain, now NFTs can be minted on Solana (SOL) and Avalanche (AVAX) blockchains respectively with many more currently under development.

Read about: Where to Buy/Sell Nfts