A non-fungible token or NFT is a unit of data on a digital ledger (blockchain). Each NFT can represent a unique digital item. As these are not exchangeable, these are blockchain assets that are designed not to be equal. A movie ticket is a non-fungible token as it cannot be used for any movie any time.

These digital files could represent art works, games, audios, videos or any type of creative work. Any object can potentially be tokenised and put on sale, including this write up, if there is a market and price for it.

In today’s world, even digital homes have been sold for a hefty price and have been paid in ethereum, a leading cryptocurrency. Thus there is an NFT market on which NFT can be bought.

Digital files are definitely reproducible, the NFTs representing them can be tracked on blockchains. These provide buyers unique proof of ownership of the NFTs. These cannot be held in hand. They are just certificates of ownership for virtual or physical assets. NFTs can be used to commodify the digital creations.

NFTs work on proof-of-work blockchain, rather than proof-of-stake blockchain. The former is less energy efficient. An NFT is cryptographic token, and is similar to cryptocurrency, except the fact that it is not interchangeable mutually. (not fungible). Cryptocurrencies are fungible tokens as one Bitcoin or Ethereum can be exchanged for any other token.

In auction market of NFTs, there are marketplaces like KnownOrigin, Rarible, OpenSea, Nifty Gateway, SuperRare, Decentraland.

The buyer of NFT does not get exclusive access to the work. NFT can be used to create artificial scarcity of the digital work.