A non-fungible token (NFT) is a special type of cryptographic token which represents something unique; non-fungible tokens are thus not interchangeable. This is in contrast to cryptocurrencies like bitcoin, and many network or utility tokens that are fungible in nature.
Non-fungible tokens are used to create verifiable digital scarcity, as well as player ownership, and the possibility of asset interoperabilty across multiple games. NFTs are used in several specific applications that require unique digital items like crypto-collectibles and crypto-gaming.
Popular blockchain games like CryptoKitties make use of non-fungible tokens on the Ethereum blockchain. NFTs are used to represent in-game assets, and are controlled by the user, instead of the game developer. This lets the assets be traded on third-party marketplaces without permission from the game developer. NFTs also find potential use in digital art, by helping prove authenticity and ownership.
Growth and mainstream appeal
Non-fungible tokens made their way into mainstream news when CryptoKitties went viral  and subsequently raised a $12.5 million investment. RareBits, a Non-Fungible Token marketplace and exchange, raised a $6 million investment. Gamedex, a collectible cards game platform made possible by NFTs, raised a $800,000 seed round. Decentraland, a blockchain-based virtual world, raised $26 million in an initial coin offering, and had a $20 million internal economy as of September 2018[update].
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