Non-Fungible Tokens (NFTs) are unique digital assets stored on a blockchain that represent ownership or proof of authenticity of a specific item—such as artwork, music, collectibles, or even real-world assets like land or trees.
Key Features:
- Non-fungible: Each NFT is one-of-a-kind and cannot be replaced or exchanged on a one-to-one basis (unlike cryptocurrencies such as Bitcoin).
- Blockchain-based: Recorded on decentralized ledgers, ensuring transparency, immutability, and traceability.
- Verifiable ownership: Confirms who owns a digital or tokenized asset without the need for intermediaries.
- Programmable metadata: Can include details like creator info, smart contract rules, and asset attributes.
Example (Agarwood Context):
Each Agarwood Tree Ownership NFT could represent a specific tree or plot in a plantation, recording its growth data, carbon offset value, and future resin yield — all verified on the blockchain.