A non-fungible token (or NFT) is a digital asset that is unique. The token represents a physical item and, unlike Bitcoin or other digital currencies, an NFT cannot be replaced by a similar asset.

NFTs are bought and sold online using digital currencies and the asset can then be traded, sold, displayed or held in a collection. Details about ownership of an NFT are contained in a digital wallet and the information around that asset, including ownership, is permanently stored on a blockchain ledger.

In the past, NFTs have been applied to unique and rare assets like art, music or other collectibles. They have also been used for in-game moments and video, and more recently an NFT was used in the sale of an apartment.
A major feature of NFTs is that they certify ownership digitally. They also offer the potential to attach royalties to the token.

Effectively this means every time the digital asset transacts, the original owner could receive a percentage of the sale proceeds.