Glossary

Non-Fungible Tokens (NFTs)

Non-fungible tokens (NFTs) are uniquely identifiable data units that can store information such as a certificate of authenticity, a record of ownership of a digital asset. Unlike cryptocurrencies, each NFT has a distinct value, which makes it non-exchangeable on a one-to-one basis with other NFTs. Central to NFTs is the use of smart contracts, which automate the enforcement of agreements, including the transfer of ownership and the execution of specific conditions tied to the NFT. This technology underpins the creation, purchase, and sale of digital art, collectibles, and other unique assets, offering a new way to authenticate and transfer digital ownership securely.