An NFT, or non-fungible token, is a unique digital asset recorded on a blockchain that proves ownership of a specific item.
Unlike a cryptocurrency, where every unit is identical, each NFT is unique and cannot be exchanged one-for-one with another.
NFTs can represent digital art, collectibles, in-game items, music and more. The token records who owns the item and its history.
Most NFTs are built on Ethereum or other smart-contract chains. Ownership and transfers are recorded permanently on the blockchain.
NFT markets are volatile and speculative, and ownership of an NFT does not always mean you own the underlying copyright.
NFTs introduced verifiable digital ownership, but like any speculative asset they should be approached with caution.