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What are non-fungible tokens?
Non-fungible tokens (NFTs) are unique digital assets that are authenticated on a blockchain. An NFT functions as a digital signature that can be used to publicly verify and establish provenance for original and unique media products, distinguishing them from identical copies and other media. NFTs are non-fungible, meaning they are not identical to or interchangeable with other tokens. NFTs are being used to attribute ownership to a diverse array of digital assets, such as art, sports cards, NBA video highlights, digital sneakers, rights to a name, and virtual real estate. The thesis behind NFTs is that an individual entity can own an original work of digital media (or other unique digital asset) that maintains its scarcity and value. The format gives creators the ability to sell and profit from their work directly – and even capture royalties on the secondary market, depending on how the programmable contract is structured.