So, what is NFT?
NFT stands for non-fungible token. But before we go any further, you have to understand what fungible and non-fungible assets are.
Money, oil, bonds, gold and bitcoins are fungible assets, meaning that they can be traded or exchanged. They are equal in value – $1 bill for your $1 bill. Meanwhile, non-fungible assets are different because they have a unique code and properties that aren't interchangeable and cannot be replaced with a different item of the same kind. It's like autographed memorabilia, a rare sports card, an antique car, or a rare old coin – it is non-fungible as they can't be easily replaced.
NFTs are digital assets that represent real-world pieces or things like art, music, and videos. It has a blockchain-based signature that essentially turns the item into a one-of-a-kind digital token. This signature allows anyone to verify the artwork's authenticity and any transactions related to the artwork, including ownership, the person who sold it, and the time and cost of every transaction.