Non-fungible tokens (NFTs) are digital assets that are cryptographically tokenized to generate unique, verifiable ownership identifiers. NFT platforms utilize blockchain technology to turn any form of digital media into NFTs, including images, designs, videos, and music. In addition to asset generation, NFT platforms also allow for the sale and distribution of NFTs. Both companies and individual content creators can utilize these tools to generate, market, and sell NFTs.
Some tools possess a "launchpad" functionality that allows creators to raise money by selling assets prior to public release. Others provide merchant tools such as for the creation of e-commerce stores. Additionally, most NFT platforms integrate with cryptocurrency wallets to allow customers to purchase assets with cryptocurrencies like Bitcoin or Ethereum.
Technologically, these tools share many features with asset tokenization platforms, which also provide proof of ownership tokens. But not all tokenized assets are non-fungible. Asset tokenization platforms can generate all kinds of tokens, many of which can be altered after tokenization or sold in component parts. NFTs, on the other hand, can not be changed after tokenization and can only be sold as the original, whole token.
To qualify for inclusion in the NFT Platforms category, a product must:
Facilitate the creation of NFTs
Provide a marketplace or launchpad for fundraising and sales
Allow for the sale and distribution of NFTs through integrations or a native e-commerce platform