Non-fungible tokens (NFTs) are cryptographic assets on a blockchain with unique identification codes and metadata that distinguish them from each other. Unlike cryptocurrencies, NFTs cannot be traded or exchanged at equivalency. This differs from fungible tokens like cryptocurrencies, which are identical to each other and, therefore, can be used as a medium for commercial transactions.
The specific construction of each NFT has the potential for different use cases. For example, they are an ideal vehicle to digitally represent physical assets like real estate and artwork. Because they are based on blockchains, NFTs can also be used to remove intermediaries and connect artists with audiences or for identity management. Non-fungible tokens can remove intermediaries, simplify transactions, and create new markets.
NFTs will be available to Electra Protocol with the release of the smart contracts functionality. The ecosystem will be a perfect place for NFT solutions, since its ecosystem is built for instant transactions at almost zero cost.