NFT stands for “non-fungible token.”
Digital tokens are a kind of record that stores an asset’s value and proof of ownership in an information system called a blockchain.
For example, cryptocurrencies such as Bitcoin and Ether are digital tokens. They are fungible, which means that the value of any one Bitcoin is exactly equal to the value of another Bitcoin. That makes them like regular, or “fiat” currencies: a $1 bill can always be replaced by another $1 bill.
Unlike cryptocurrencies, NFTs are non-fungible, which means that each token has its own unique value. The value of any one NFT can be very different from the value of another NFT.
The unique value of NFTs comes from the fact that they store additional information on the blockchain. This information can be basically anything unique that can be stored digitally, such as the URL to an image, video or audio work of art, the owner of that artwork, the original creator of the work, the artwork’s name, and so on.
In Zedge, NFTs currently hold the sales price and proof of ownership for a Video Wallpaper. We will be adding support for additional content types in the near future.
This means that if you purchase a Video Wallpaper with the “NFT” badge, you are the sole owner of that artwork. No other person can buy proof of ownership on Zedge, making that item a one of a kind, collectible work of art that can be gifted or resold to someone else at a later date.