What is an NFT?

NFT stands for “Non-fungible Token” – which loosely translates to “non-replaceable value token”. NFTs are collectible digital assets such as crypto artworks, virtual real estate, digital trading cards, or game characters. Even documents such as identity cards or vaccination records could be stored on the blockchain.

NFTs work by tokenizing digital assets on the blockchain, creating a digital token that can be bought or sold. When someone buys an NFT, they receive a key that is stored in the digital network and grants access to that NFT on the blockchain network. The key is proof that one owns the original copy of the NFT and should be kept safe at all times.