NFT stands for non-fungible token, which means that it's a unique token that can't be replaced by another token. NFTs are used to represent ownership of unique items or digital goods, such as ¹ ²:
- Artwork
- Collectibles
- Music
- Video and audio files
- Event tickets
- Domain names
- Memes
- Sports highlights
- Video games
- Fashion items
- Trading cards
NFTs are stored on a public ledger called a blockchain, which records transactions. Each NFT has a unique identification code that distinguishes it from other NFTs, which makes it easy to transfer and verify ownership ¹ ². The NFT market experienced rapid growth during 2020, with its value tripling to $250 million. In the first three months of 2021, more than $200 million were spent on NFTs ².