Non-fungible tokens (NFTs) are a concept in cryptocurrency that represent unique digital assets, distinct from traditional cryptocurrencies like Bitcoin or Ethereum. While cryptocurrencies are fungible, meaning each unit is interchangeable with another, NFTs are indivisible and cannot be exchanged on a like-for-like basis.

NFTs leverage blockchain technology to establish ownership, provenance, and scarcity of digital assets, such as artwork, collectibles, virtual real estate, or even tweets. Each NFT is assigned a unique identifier, which is recorded on the blockchain, providing a verifiable and immutable record of ownership.

The concept of NFTs has revolutionized the digital art market by allowing artists to tokenize their creations and sell them directly to buyers. NFTs enable artists to retain ownership rights and potentially earn royalties when their NFTs are resold. Additionally, NFTs have extended beyond art, finding applications in gaming, virtual reality, music, and more.

The value of an NFT is determined by factors such as scarcity, demand, provenance, and the reputation of the creator. NFTs have garnered attention for their high-profile sales and the potential for creators to monetize their digital creations in new ways.

While NFTs have opened up exciting opportunities, they have also sparked discussions about the environmental impact of blockchain mining and concerns over copyright infringement. Nonetheless, NFTs continue to shape the digital landscape and redefine the notion of ownership in the digital age.