A non-fungible token (NFT), is a collectible digital asset which holds value as a form of cryptocurrency. NFTs are built on blockchain so they are individual tokens with extra information stored in them.
That extra information allows them to take the form of art, music, video (and so on), in the form of JPGS, MP3s, videos, GIFs and more.
Because they hold value, they can be bought and sold just like other types of art – and, like with physical art, the value is largely set by the market and by demand.
How do NFTs work?
The blockchain network acts as the decentralized ledger that tracks the ownership and transaction history of each NFT, which is coded to have a unique ID and other metadata that no other token can replicate.
This process gives NFTs the attributes of originality and scarcity that makes them so attractive when coupled with digital media.
This system can’t be hacked by right-clicking and saving the image of an NFT. That won't make you a millionaire because your downloaded file won't hold the information that makes it part of the blockchain.
NFTs are designed to give you something that can’t be copied: ownership of the work.