NFT stands for Non-Fungible Token. It is a type of digital asset that uses blockchain technology to verify its uniqueness and ownership. Unlike cryptocurrencies like Bitcoin, which are fungible (meaning one unit is interchangeable with another), each NFT is unique and cannot be replicated.
NFTs can be used to represent a wide range of digital content, including artwork, music, videos, and even tweets. They are typically bought and sold on blockchain marketplaces using cryptocurrency such as Ether (ETH). The ownership of an NFT is recorded on the blockchain, providing a permanent and verifiable record of ownership.
NFTs have gained popularity in recent years as a way for artists and creators to monetize their digital creations and for collectors to own unique and valuable digital assets. However, there is some debate around the environmental impact of NFTs, as their creation and sale can require significant amounts of energy and contribute to carbon emissions.