NFT stands for **non-fungible token**. It is a digital asset on a blockchain having a unique identification code that helps it maintain its uniqueness. Another interesting thing about NFT is that you cannot replicate an NFT or tamper with it.
NFTs are built with the similar kind of programming that’s used for cryptocurrencies. However, both are different.
To put it more simply, NFTs represent real-world items such as artwork, gaming assets, and real estate, but they have no physical form. Therefore, tokenizing them makes it easy to purchase, sell, and trade them efficiently while also bringing down the probability of any fraud in the transaction.
**Now that we've discussed what NFTs are, let us discuss how they function.**
NFTs are managed on a blockchain. You can consider using the Ethereum blockchain, which is one of the most popular blockchains for non-fungible tokens.
These blockchains function as a decentralized ledger that can trace the ownership and transaction history of every NFT. Furthermore, the code and a unique ID of the NFT make sure no other token can duplicate it.
The next step is to own cryptocurrencies such as ether (ETH) and store them in a wallet such as Trezor or Electrum.
Users can build and sell their digital assets on an NFT platform or marketplace such as the OpenSea platform or SuperRare.