A non-fungible token (NFT) is a type of digital asset that represents something unique, like a piece of art or a collectible item. It's called "non-fungible" because unlike cryptocurrencies like Bitcoin, which are interchangeable and have the same value, each NFT is one-of-a-kind and has its own distinct value.
Think of it like a digital certificate of authenticity that verifies ownership of a specific digital asset, such as a piece of artwork or a video clip. NFTs are created using blockchain technology, which is a secure and transparent digital ledger that allows for the ownership and transfer of these digital assets to be tracked and verified.
NFTs have gained popularity in recent years as a way for artists and creators to sell their digital creations and for collectors to own unique digital assets.
(In layman's terms):
An NFT is like a unique digital item, kind of like a collectible, that you can buy and own. It's different from something like Bitcoin, which is interchangeable and all have the same value. NFTs are created using special computer technology that makes sure each one is one-of-a-kind and can't be copied or duplicated. This makes them valuable to collectors who want to own something special and unique. For example, an artist might create a digital painting and sell it as an NFT, so the person who buys it would own the original, one-of-a-kind digital painting.