A Non-fungible Token (NFT) is a unique and indivisible digital asset that is stored on a blockchain. NFTs are commonly used to represent ownership of digital art, collectibles, or other valuable digital items. They have become popular in the trading world due to their ability to represent ownership of rare, one-of-a-kind assets in a secure, decentralized way.
Unlike traditional cryptocurrencies, NFTs are not interchangeable with one another, as each one is unique and has its own set of properties and characteristics. This allows NFTs to be used as digital certificates of ownership for digital assets, and enables them to be traded on decentralized marketplaces.
The key feature of NFTs is that they are stored on a blockchain, which provides a secure, transparent, and tamper-proof way of recording ownership. This makes NFTs a popular choice for high-value digital items, as they can be traded easily and securely, and the ownership of the asset is easily verifiable.