Non-Fungible Token or NFT are unique token that can’t be replaced with something else. For example, a bitcoin is fungible — trade one for another bitcoin, and you’ll have exactly the same thing. A one-of-a-kind art piece, however, is non-fungible. If you traded it for a different art piece, you’d have something completely different.
NFTs can be anything digital (such as drawings, music, virtual clothes or digital art). The NBA, recently launched Top Shot, an online marketplace selling video clips of game highlights. Those clips — like a classic LeBron James dunk — command varying prices depending on rarity, and they all come in NFT format. Buyers collect them, and sometimes resell them, for tens of thousands of dollars, much like digital trading cards.
The NFT tech is spreading across various industries and many brands are interested in its use. It will surely find an application in the fashion industry to ensure product authenticity and rarity and we look forward to observing the innovative ways it will utilized for.