What is NFT?

NFTs, or Non-Fungible Tokens, are unique digital assets that represent ownership or proof of authenticity of a specific item or piece of content on a blockchain. Unlike regular digital assets, such as cryptocurrencies, which are fungible and can be exchanged on a one-to-one basis, each NFT is distinct and cannot be replicated or exchanged equivalently with another NFT.

In simpler terms, NFTs are like digital certificates of ownership for unique items or content in the digital realm. They provide a way to verify the uniqueness, ownership, and provenance of digital assets, such as artwork, music, videos, collectibles, virtual real estate, and more, by recording ownership and transaction history on a blockchain.

Regular digital assets, on the other hand, are fungible and can be exchanged or divided into smaller units without affecting their value or uniqueness. For example, one Bitcoin is equivalent to another Bitcoin, and each Bitcoin can be divided into smaller units called satoshis, which are also fungible and interchangeable.

In summary, NFTs are unique digital assets that represent ownership or proof of authenticity of specific items or content, while regular digital assets are fungible and can be exchanged on a one-to-one basis without affecting their value or uniqueness.