Non-Fungible Token (NFT). A unique digital identifier that cannot be copied, substituted, or subdivided, that is recorded in a blockchain, and that is used to certify authenticity and ownership. Most cryptocurrencies are fungible assets. For instance, all Bitcoins are the same and owners can use them interchangeably for transactions. Some blockchains enable the creation of tokens that have individually unique properties and traits. These are called non-fungible tokens (NFTs).
NFTs are now best known as a way to collect and speculate on the value of unique pixelated images, but this enabling technology can add any type of unique asset to a distributed database. For example, one of the leading cryptocurrency decentralized exchanges, Uniswap V3, uses NFTs to represent positions in its liquidity pools.