A non-fungible token (NFT) is a type of financial security made out of digital data kept on a distributed ledger called a blockchain.
An NFT's ownership is documented on the blockchain and is transferable by the owner, enabling the sale and trading of NFTs. Anyone can make NFTs, and they don't necessarily need to know how to code.
Digital data including images, films, and music are frequently referred to in NFTs. Unlike bitcoins, which are fungible, NFTs can only be identified once. The digital file that an NFT refers to determines its market worth.
NFT proponents assert that NFTs give the public a public signed document or proof of purchase, however the legal rights that an NFT conveys may not be clear. It is not necessary to have copyright, intellectual property protection, or any other legal rights over an attached digital file in order to hold an NFT as described by the blockchain.
An NFT does not block the production of NFTs that relate to the same digital files, nor does it prohibit the exchange or copying of the associated digital file.