NFT (Non-Fungible Token) is a unique digital asset that confirms ownership of an item on the blockchain. Unlike cryptocurrencies such as Bitcoin or Ethereum, each NFT is unique and cannot be exchanged for another similar one. NFTs are used for buying and selling digital art, collectibles, music, videos, and even virtual land in metaverses.
The connection between NFTs and cryptocurrency lies in the blockchain technology that underpins both. It is through cryptocurrencies, most often Ethereum, that NFTs are bought and sold. The blockchain ensures transaction security and transparency, while the token certifies the owner's rights to the unique digital object. Therefore, NFTs represent not only a technology but also a new market that opens up opportunities for creativity and investment.
