[[NFT Token Standards]] **Non Fungible Tokens (NFT)** is the ability to create 100% unique, digital 'finger prints' that can be bought, sold, or transferred. Basically, NFT = "hey I own this (item) and I can prove it with the unique token I have in my crypto wallet" Value is in Ownership in NFTs. There are 2 NFT projects that basically revolutionized and inspired the creation of the NFT token itself which we now know was Ethereum's **'ERC-721 token.'** Basically, when you buy an NFT, you're buying a unique 'ERC-721' token, which represents the item you have purchased ownership of. --- By Naval: - An NFT is a **unique, on-chain token** representing ownership of an off-chain asset. - The token is backed by a**social contract** from its **creator and a surrounding community.** - By **assigning a unique token **to a thing, its **ownership** (not the thing itself!) becomes programmable, verifiable, divisible, durable, universally addressable, composable, digitally secured, and easy to transfer. - Bitcoin and other completely on-chain assets are **provably scarce** - scarcity is enforced by **code** and **distributed consensus**. - Off-chain assets represented by NFTs are not provably scarce. The promise of scarcity is a slender thread, only as strong as the **social contract with the creator and interwoven with the backing of the community.** - **NFTs tokenize all the things**. We are going from a world where every protocol has a token, to where every (decentralized) application has a token, to where every valuable digital representation of an object or person has a token. -