A Non-Fungible Token (NFT) is a type of digital asset that uses the same blockchain technology that underpins cryptocurrencies, although it is not a cryptocurrency itself. The “non-fungible” part of the NFT name means that whatever digital asset is contained in the Token is unique and cannot be substituted by something similar. Hence, the owner of the NFT not only is able to prove ownership of the digital asset, but also can prove the authenticity of that digital asset. You can imagine an NFT to be an unchangeable electronic certificate of authenticity for a unique asset.
So far, we have seen NFTs used for collectibles, such as digital art, but since NFTs are digital representations of assets, they can be used in the future for any scarce or unique asset.