Non-fungible tokens (NFTs) are unique digital assets that are represented on a blockchain, typically using the Ethereum network. Unlike traditional cryptocurrencies, which are interchangeable and have equal value, each NFT is unique and cannot be replicated or replaced. This makes NFTs ideal for representing digital art, collectibles, and other unique assets.

To create an NFT, an artist or content creator will typically create a digital file, such as an image or video, and then use a platform like OpenSea or Rarible to mint the NFT on the blockchain. The NFT can then be bought and sold on various marketplaces, with ownership and provenance tracked through the blockchain.

The value of an NFT is determined by the market demand for that particular asset, with some NFTs selling for millions of dollars. While there are risks and challenges associated with investing in NFTs, they have become an increasingly popular way for artists and creators to monetize their work and for collectors to own unique and valuable digital assets.

Non-fungible tokens (NFTs) are unique digital assets verified using blockchain technology, typically Ethereum. Unlike cryptocurrencies such as Bitcoin, which are interchangeable, NFTs are one-of-a-kind and represent ownership of specific items like art, music, videos, or virtual real estate. Each NFT contains distinct metadata and a unique identifier, ensuring its authenticity and scarcity. NFTs are bought, sold, and traded on specialized platforms, with transactions recorded on the blockchain for transparency. Ownership is transferred via smart contracts, which automate and enforce agreements. NFTs have gained popularity for enabling creators to monetize digital content and providing collectors with verifiable ownership of digital assets.