A non-fungible token (NFT) is a financial security consisting of digital data stored in a blockchain, a form of distributed ledger. The ownership of an NFT is recorded in the blockchain, and can be transferred by the owner, allowing NFTs to be sold and traded. NFTs typically contain references to digital files such as photos, videos, and audio. Because NFTs are uniquely identifiable, they differ from cryptocurrencies, which are fungible. The market value of an NFT is associated with the digital file it references.

The main is the fact that cryptocurrencies are, by their very nature, fungible.

NFTs, as their name suggests, are not. One Bitcoin (or OXO) equals another Bitcoin (or OXO), but one NFT does not equal another NFT. Each is distinct, unique, and valued differently depending on their perceived value and demand.