Non-fungible tokens (NFTs) are a type of digital asset that represents ownership or proof of authenticity of unique items or digital content on a blockchain. Unlike cryptocurrencies such as Bitcoin or Ethereum, which are fungible and can be exchanged on a one-to-one basis, NFTs are indivisible and unique, making them ideal for representing scarce or one-of-a-kind digital assets. Here's an explanation of NFTs and how they work: