You have probably already heard about NFTs, as they received a lot of attention over the last months, impacting not only the art market but a number of different industries. But what are they exactly?
In simple words, NFTs are units of data linked to the blockchain, which can transform analog or digital works into unique, verifiable assets that are easy to trade on the blockchain. Unlike a bitcoin, which is fungible just like paper currency (i.e. you can trade one bitcoin for another and you will have exactly the same thing), NFTs are not interchangeable. Instead, they are inextricably associated to only one specific and unique object, in a way which allows to track them on the blockchains to provide the owner with a proof of ownership.
Source: NFT: just another bubble or the next big revolution? – Lexology