Non-Fungible Tokens are easily exchangeable and individually unique digital assets which are held on certain blockchains, mainly Ethereum but also others such as Flow, Wax, and many others. Although the original concept for NFT goes back to 2015, it wasn't until 2017 when the first projects began appearing on the Ethereum Blockchain in the ERC20 standard.
Between 2017 and 2019 more NFT standards were accepted and utilized. One of the key differences between Cryptocurrencies and Non-Fungible Tokens is that every NFT is completely and not directly interchangeable with any other asset by identity, value, and/or utility.
Every Non-Fungible Token is composed of metadata which gives each one their individuality, these attributes can include size, artist name, scarcity etc. NFT not only exist in a digital space but crucially they can also represent any type of physical asset, acting as a kind of ‘digital twin’ to anything existing in the real world and enabling the ownership and exchange of physical possessions within digital marketplaces.
True ownership is one of the defining key components of any NFT and, as the digital economies continue to thrive, there is no doubt that NFT will play a pivotal role in bringing the digital and physical worlds closer to one another than they have ever been before.