Non-fungible Tokens

Non-fungible Tokens — by Alessandro Civati
  • Non-interoperable: NFTs cannot be used across the board to replace or in exchange for another NFT. For example, a CryptoPunk cannot be used in the CryptoKitties game and vice versa. The same applied to collectibles and trading cards that cannot be used interchangeably across platforms.
  • Indivisible: NFTs cannot be divided into smaller units as it happens with Bitcoin that can be divided into smaller denominations called satoshis. An NFT will only exist as a whole item. You cannot own part of an NFT.
  • Indestructible: Non-fungible tokens cannot be destroyed, replicated, or destroyed since all data is stored on the blockchain via smart contracts. The ownership of NFTs is immutable, meaning that gamers and collectors are the proper owners of their NFTs and not the companies that created them. The ownership of NFTs is entirely different and cannot be compared to buying music from iTunes, where you do not own whatever you are buying as a user. In these scenarios, you are only purchasing the license to listen to the music and not holding it.
  • Verifiable: One of the significant benefits of blockchains is the storing of historical ownership data. Therefore, the ownership of a digital artwork can be traced back to the original creator, which helps in authenticating art pieces without the need for verification by third parties.

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