NFT (Non-Fungible Token) stands for a unique digital asset verified and stored on a blockchain. Unlike cryptocurrencies like Bitcoin (which are fungible and interchangeable), NFTs are one-of-a-kind and cannot be replicated or replaced. Here’s what they do and why they matter:

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### What NFTs Do:

1. Prove Ownership & Authenticity:

- NFTs act as digital certificates of ownership for virtual or physical items (art, music, videos, collectibles, etc.).

- Each NFT has a unique identifier and metadata stored on a blockchain (e.g., Ethereum, Solana), making it tamper-proof.

2. Enable Digital Scarcity:

- Creators can mint limited editions or single copies of digital files, ensuring scarcity even for easily copied content.

3. Facilitate Royalties:

- Smart contracts in NFTs let creators earn automatic royalties (e.g., 5–10%) every time the NFT is resold.

4. Power New Economies:

- NFTs are used in gaming (unique in-game items), virtual worlds (land in Decentraland), memberships (exclusive communities), and more.

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### Common Use Cases:

- Digital Art: Artists like Beeple sell NFTs for millions, giving buyers provable ownership.

- Collectibles: CryptoPunks, Bored Apes, and sports NFTs (NBA Top Shot) are traded like rare trading cards.

- Music & Media: Musicians release albums as NFTs, granting fans perks like concert access.

- Identity & Credentials: NFTs can represent certificates, licenses, or even real estate deeds.

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### Key Clarifications:

- NFT ≠ the File Itself: The NFT is a token linked to a file (hosted on a server/IPFS), not the file itself.

- Ownership ≠ Copyright: Buying an NFT doesn’t grant intellectual property rights unless explicitly stated.

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### Why People Care:

- Creators: Monetize work directly, bypassing traditional gatekeepers (galleries, labels).

- Collectors: Own rare digital items, support artists, or speculate on value.

- Critics: Argue NFTs are overhyped, environmentally taxing (proof-of-work blockchains), or enable scams.

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TL;DR: NFTs are unique digital deeds that verify ownership of assets, enabling new ways to create, trade, and monetize in the digital age. Their value depends on cultural significance, utility, and market demand—not just the tech itself.