A non-fungible token (NFT) is a unique digital identifier that is recorded on a blockchain, and is used to certify ownership and authenticity. It is a data file stored on a type of digital ledger called a blockchain, which can be sold and traded. NFTs can represent digital or physical assets such as images, art, music, or recordings of sports events. They can also represent in-game assets such as digital plots of land and personalized avatars. NFTs can be associated with a particular asset and may confer licensing rights to use the asset for a specified purpose. An NFT solely represents a proof of ownership of a blockchain record and does not necessarily imply that the owner possesses intellectual property rights to the digital asset the NFT purports to represent. NFTs are built following the ERC-721 (Ethereum Request for Comment #721) standard, which dictates how ownership is transferred, methods for confirming transactions, and how applications handle safe transfers. Key features of NFTs include:

• Unique: NFTs are unique cryptographic tokens that exist on a blockchain and cannot be replicated.
• Non-fungible: NFTs are non-fungible, meaning they cannot be replaced with something else.
• Digital assets: NFTs are digital assets that can come in the form of art, music, in-game items, videos, and more.
• Ownership: NFTs confer ownership and authenticity of a particular asset.
• Scarcity: NFTs create digital scarcity by being generally one of a kind or at least one of a very limited run.

NFTs can be bought and sold on digital markets and can hold a value which is set by the market. They can be beneficial to the music industry by creating one-of-a-kind digital collectibles, while in sports, they can offer fan experiences and limited-edition memorabilia. NFTs can also be used to verify and streamline investing.