NFTs prove ownership of a unique digital asset like art, music, collectibles, videos or anything else with blockchain technology.

NFT stands for non-fungible token. That sounds like an intimidating technical term (no more nerd talk, promise!). But NFTs are just digital certificates of authenticity.

If you buy a physical painting, you know it’s real because you see the artist’s signature on the canvas. Somebody can photocopy the painting, but they don’t own it — you do. Before NFTs, digital assets were like photocopies:

You can see who posted something, but you can’t see who owns an Instagram post, Pinterest Pin or Reddit meme.

NFTs are like a signature for digital items: They authenticate ownership of digital assets like art, collectibles, music, videos, in-game assets, and more. Just like physical certificates, they document:

• Who created it
• When it was created
• Who bought it (and when)
• The price(s) it solds for
• Who owns it now

(Technically, NFTs can contain any data the creator wants to include, but the above are most relevant.)

All of this is public via a blockchain, so anyone can trace each of your NFTs from the original creator all the way to your wallet—and verify its authenticity (even the friends who call you crazy for buying a profile picture 😉).

But owning digital assets is more than “nice to have”, a fun hobby or a digital stampcollection.