Explanation: An NFT is a digital asset that exists on a blockchain. The blockchain serves as a public ledger, allowing anyone to verify the asset’s authenticity and ownership.

• So unlike most digital items which can be endlessly reproduced, each NFT has a unique digital signature, meaning it is one of a kind.
• NFTs are usually bought with the cryptocurrency Ether or in dollars and the blockchain keep a record of transactions.
• While anyone can view the NFTs, the buyer has the status of being the official owner – a kind of digital bragging rights.
• All kinds of digital objects – images, videos, music, text and even tweets – can be turned into an NFT.
• Digital art has seen some high-profile sales, while in sports; fans can collect and trade NFTs relating to a particular player or team.
• For instance, on the National Basketball Association’s Top Shot platform, enthusiasts can buy collectible NFTs in the form of video highlights of moments from games.
• While these highlights can be seen for free on other platforms such as YouTube, people are buying the status as the owner of a particular NFT, which is unique due to the digital signature.

Source: FORUMIAS