What is an NFT?

NFT stands for “non-fungible token”. It is a type of digital asset that represents ownership or proof of authenticity of a unique item or piece of content, such as digital art, music, videos, or other forms of digital media.

Unlike traditional cryptocurrencies such as Bitcoin or Ethereum, which are fungible and can be exchanged for one another, each NFT is unique and cannot be replicated or divided. NFTs are created on a blockchain, which is a decentralized and transparent digital ledger that records ownership and transactions. This means that NFTs provide a way to verify the authenticity and ownership of digital content, which has become increasingly important in the digital age.

NFTs have gained popularity in recent years, with some selling for millions of dollars at auctions. They have also been criticized for their environmental impact, as the energy required to create and trade NFTs can be significant.