Learn in the textbookFinTech, Digital Currencies, and Identity Verification / Anti-Money-Laundering Measures
DefinitionAn NFT (non-fungible token) is a digital certificate (token) recorded on a blockchain, each of which can be distinguished from all others.
ExplanationDigital data is easy to copy, but an NFT keeps a hard-to-tamper-with record of who owns which data. NFTs are used for digital art, in-game items, event tickets, and more. An NFT is not a mechanism that stops the data itself from being copied; it is a record of ownership and trades.
AnalogyIt is like one print in an edition whose serial number and owner's name are written in a register, so it can be told apart from other prints of the same picture.
Memory hookNon-Fungible means that nothing can take its place. A 1,000-yen bill is worth the same no matter whose bill you swap it for, but a signed one is not.