Non-Fungible Token (NFT)

November 18, 2021 - Daniel Dreier

A non-fungible token (NFT) is a digital item which is hosted on a blockchain and contains a unique identifier. That means there is only one like it, and it cannot be replicated. This sets it apart from “fungible” tokens and coins (like bitcoin) which are designed to be used interchangeably.

Currently, NFTs primarily make use of the Ethereum blockchain, and can include graphics or other digital content. Theoretically, they can also be used to represent physical items, much like a title deed.

Because each NFT has a unique identifier and cannot be replicated, NFTs enable the creation of original digital content which can be differentiated from copies. In theory, at least, this ability to uniquely identify pieces of digital content as originals adds a value to virtual items.

An NFT could be compared to an original work of art. Although a work of art can be copied, there can only be one original. Likewise, although the digital content linked to an NFT can be copied, only the original will be linked to the NFT. This means NFTs can be used to differentiate between original digital content and duplicates. At least in theory, this ability to identify originals can add value to unique pieces of digital content.

More on this topic:
Blockchain wallets explained
Online trading comparison
Buying and spending bitcoin in Switzerland

Online trading brokers in comparison

Find the cheapest online broker now

Compare now
Trading platforms

Brokers with low fees

Swiss Broker

Saxo Bank Switzerland

  • Licensed Swiss bank (FINMA)

  • No custody fees when securities lending is activated

  • Free expert research and trading signals

Swiss Broker


  • Swiss online bank

  • No custody fees for stocks

  • Free market research and trading signals

Wealth managers in comparison

Find the most favorable wealth management now

Compare now for free
Editor Daniel Dreier
Daniel Dreier is editor and personal finance expert at