Question

What is the full form of NFT in the context of blockchain?

• A. Non-fungible token
• B. Non-functional tax
• C. Non-fakable token
• D. Non-fundable tax
• E. Neo-fictitious token

Answer 1

The Correct Option is A

In the context of blockchain, the term "NFT" stands for Non-fungible token. Let's explore the meaning of key terms within this context:

• Non-fungible: Unlike traditional cryptocurrencies such as Bitcoin or Ethereum, which are fungible (meaning each unit is identical and interchangeable), NFTs are unique digital assets with distinct information or attributes. This uniqueness gives each NFT a distinct value and makes it non-interchangeable with other tokens.
• Token: In blockchain terms, a token represents a unit of value or utility that is issued and managed on a blockchain platform. NFTs, being tokens, leverage blockchain technology to track ownership and guarantee the authenticity of each piece.

Therefore, "Non-fungible token" correctly describes a unique digital asset in blockchain technology that cannot be exchanged for another of equal value due to its unique properties.