NFTs (Non-Fungible Tokens) are unique digital assets that are stored on a blockchain, which is a decentralized digital ledger. Each NFT represents a specific digital asset, such as artwork, music, videos, or even tweets, and is authenticated using blockchain technology. Unlike cryptocurrencies, which are interchangeable with one another, NFTs are unique and cannot be replaced by any other token.

The ownership and authenticity of an NFT are guaranteed by the blockchain, which records the ownership and transaction history of each token. This makes it possible for creators to sell their digital works directly to buyers, who can own a unique and verifiable piece of digital art, for example.

The value of NFTs is determined by market demand, and prices can range from a few dollars to millions of dollars for a single NFT. The ability to own and trade unique digital assets has created a new market for creators and collectors, and has opened up new opportunities for artists, musicians, and other content creators to monetize their work.

While NFTs have been criticized for their environmental impact due to the energy consumption required to maintain the blockchain network, they have gained popularity in recent years and are becoming increasingly mainstream in the worlds of art, music, and entertainment.