Non-fungible tokens, NFTs, are digital collectibles stored on the blockchain. To fully grasp the concept of NFTs, we have to take it in steps. A fungible asset is an asset that can be replaced for another one and have the same value. For example, one Bitcoin can be swapped for another bitcoin. On the contrary, a non-fungible asset is unique as one cannot be replaced with another. NFTs can be art, music, videos, games, etc.
Like traditional collectibles, people can pick up collectibles digitally. A significant advantage of NFTs is that they ensure originality in ownership though photocopies can be as it is stored digitally. NFTs contain the cryptographic signature of the maker as well as the list of all previous owners and therefore serves as a digital certificate of ownership. NFTs have received a massive adoption in recent years, with sales constantly going over the roof.
NFTs can serve the function of an investment as they can always be resold on the marketplace. It can also serve for aesthetics, just as traditional collectibles. With the growing innovation of DeFi protocols, anyone can mint and sell an NFT.