Non-Fungible Tokens (NFTs) are unique digital assets that represent ownership or proof of authenticity of a specific item or piece of content, such as artwork, collectibles, or virtual real estate. Unlike cryptocurrencies, NFTs cannot be exchanged on a one-to-one basis since each token has distinct characteristics and value. NFTs utilize blockchain technology, typically on platforms like Ethereum, to provide scarcity, provenance, and verifiable ownership of digital assets.
