What is an NFT (non-fungible token)?

NFT stands for Non-Fungible Token, which is a type of digital asset that represents ownership or proof of authenticity of a unique item or piece of content, such as a piece of art, music, video, or other creative work.

Unlike fungible tokens, such as cryptocurrencies, which are interchangeable and have the same value, each NFT is unique and cannot be replicated. This uniqueness is achieved through the use of blockchain technology, which allows for the creation of a digital certificate of ownership that is stored on a decentralized network.

NFTs are often bought and sold in online marketplaces and can be traded like any other asset. The ownership of an NFT is recorded on the blockchain and can be verified at any time, providing a transparent and secure way to prove ownership.

NFTs have gained popularity in the art world, where they are used to represent ownership of digital art and other creative works. They have also been used in other industries, such as sports and gaming, to represent ownership of rare items or achievements.