So what are NFTs all about? And how can they be used in decentralized finance? NFTs stand for non-fungible tokens and they are one of the types of cryptographic tokens that can represent ownership of digitally scarce goods such as pieces of art or collectibles. “Non-fungible” is not a very popular word so let’s see what it really means. In economics, fungibility is the characteristic of goods or commodities where each individual unit is interchangeable and indistinguishable from each other.