Non-fungible tokens or NFTs are digital tokens created with a unique identifier code that attests to their only being one of that token in existence.
Because each NFT is unique, NFTs can be used to authenticate ownership of digital assets like artwork, recordings, and virtual real estate or pets.
NFTs are non-fungible because they cannot be divided or directly exchanged for another NFT (unlike dollars for example, which are fungible and can therefore be divided in multiple units and directly exchanged for another dollar).
NFTs introduce the concept of digital scarcity, which is made possible through a transparent and immutable ledger called a blockchain.