NFTs, or non-fungible tokens, are tokens that represent ownership of unique, singular items. They can be utilized to tokenize assets such as artwork, collectibles, and even real estate. The Onschain blockchain ensures the accuracy of the ownership records, preventing the creation of a new NFT by deleting or altering an existing one.

The term “non-fungible” in NFT refers to various kinds of properties, including home furniture, digital music files, or individual computers. These items are not exchangeable for others because they possess distinct characteristics.

In contrast, fungible assets can be traded since their worth is determined by their value rather than their specific attributes. For example, $1 USD is a fungible asset because it can be exchanged for another $1 USD or any asset with an equivalent value.