What is an NFT?

Non Fungible Tokens

A non-fungible token (NFT) is a financial security consisting of digital data stored in a blockchain, a form of distributed ledger. The ownership of an NFT is recorded in the blockchain, and can be transferred by the owner, allowing NFTs to be sold and traded.

NFTs can be created by anybody, and require few or no coding skills to create. NFTs typically contain references to digital files such as photos, videos, documents, and audio. Because NFTs are uniquely identifiable assets, they differ from cryptocurrencies, which are fungible.
Certain NFT projects, such as “Bored Apes”, explicitly assign intellectual property rights of individual images to their respective NFT owners.

NFTs are not mutually interchangeable, and so are not fungible. While all bitcoins are equal, each NFT may represent a different underlying asset and thus may have a different value.