NFTs

NFT, short for Non-fungible Token, function much the same as traditional tokens in cryptocurrency with one major difference. As the name suggests, each token is non-fungible or unable to be traded one-for-one for any other NFT due to its unique characteristics. Additionally each NFT cannot be subdivided while maintaining its properties. An NFT’s metadata creates the unique characteristics which allow it to be differentiated from others. This metadata can in theory represent anything, with immutable proof of its existence and ownership coded into the blockchain. Currently, the most popular use case for NFTs is as digital representations of art, but they have the potential to be the tokenized version of anything from home deeds, clothing, ticketing, identification and more. As technical infrastructure is being built around NFTs, they will no longer remain simple tradable assets but will have functionality to be integrated into DeFi borrowing and lending protocols