Non. Fungible. Token.
NFT stands for “non-fungible token.” If something is “non-fungible” it means that it can’t be copied or substituted — there is only one of it. It is unique. And “token” refers to a type of digital token, a form of online currency.
Typically, an NFT will be a unique image or video that exists only on the computer. NFTs were initially popularized by artists as a way to promote their own work; however, the form was quickly appropriated by corporations. Burger King, Macy’s, and the NBA are a very small selection of the corporations selling NFTs. But anyone can make an NFT — all you do is save a file in a certain way on your computer, then have your NFT “minted” by a digital register.
Making an NFT is a simple process that begins with saving a digital item as any number of file types, like JPEGs, GIFs, MP3s, and so on. Next, the file needs to be “minted”, meaning that, for a fee, the file is added to a digital register that authenticates ownership. See below for more details.
From there, you can do whatever you want with your NFT. You can try to sell it or trade it on an NFT marketplace or keep it to show off to your friends. It is unique, irreplaceable, and 100% yours. Imagine your child’s piece of art or the original version of Thriller by Michael Jackson – the digital versions of course.
A lot of the current excitement around NFTs today is using the technology to sell authenticated digital art.