What is an NFT (Non-Fungible Token)?

An NFT (Non-Fungible Token) is a unique digital asset that represents ownership or proof of authenticity of a specific item or piece of content, such as artwork, music, videos, or virtual goods. Unlike cryptocurrencies like Bitcoin, which are fungible and can be exchanged for other units of the same value, NFTs are non-fungible, meaning each one is unique and cannot be replaced or exchanged on a one-to-one basis. NFTs are typically built on the Ethereum blockchain using the ERC-721 standard, although other blockchains, such as Solana, also support them. NFTs have gained significant popularity in the art and entertainment industries, where they offer new ways to monetize digital content and collectibles.