What Is an NFT?
A non-fungible token (NFT) is a type of digital asset that represents unique ownership or proof of authenticity on a blockchain. Unlike cryptocurrencies such as BTC or ETH, where one unit is interchangeable with another of equal value, each NFT is distinct and cannot be directly swapped for another with the same attributes.
NFTs are typically used to represent digital items like art, music, videos, collectibles, virtual real estate, and game assets. The blockchain records the NFT’s history and owner, making it easy to verify authenticity and provenance. This uniqueness and traceability are what give NFTs value in digital marketplaces.
Because NFTs rely on blockchain infrastructure, ownership is transparent and secured by cryptography. Buyers can hold NFTs in wallets, sell them on secondary markets, or use them in supported decentralized platforms. However, value can vary widely and depends on demand, scarcity, and community interest.
