A Non-Fungible Token (NFT) is a unique digital asset that represents ownership of an item or piece of content, either digital or physical. In the case of a physical watch, an NFT would be linked to that specific item, providing indisputable proof of ownership. Blockchain technology secures the NFT, ensuring authenticity and offering a transparent record of ownership history.
Unlike cryptocurrencies, such as Bitcoin, NFTs cannot be exchanged on a one-to-one basis, as each token is distinct and holds a different value. By utilizing NFTs for physical items like watches, owners can verify the uniqueness, provenance, and rightful ownership of their valuable possessions, bridging the gap between the physical and digital worlds.