It seems like everywhere you look you hear about all these crazy NFT sales, and about people making millions with NFT's, but what are NFT's and what they can do for you other than make you wealthy.
NFT stands for non-fungible token. Non-fungible” more or less means that it’s unique and can’t be replaced with something else. For example, a bitcoin is fungible — trade one for another bitcoin, and you’ll have exactly the same thing. A one-of-a-kind trading card, however, is non-fungible. If you traded it for a different card, you’d have something completely different.
At a very high level, most NFTs today are part of the Ethereum blockchain. Ethereum is a cryptocurrency, like bitcoin or dogecoin, but its blockchain also supports these NFTs, which store extra information that makes them work differently from, say, an ETH coin.
Examples of NFT's that have been making headlines are the Bored Ape Yacht Club an exclusive society or social organization, and owning one of the coveted NFTs unlocks that membership. It earns users access to an exclusive Discord server, for example, where fellow owners—including celebrities—hang out and chat. And Apes tend to flock together on social media, where the increasingly familiar avatars have united a digital brotherhood of sorts. BYAC is a collection of 10,000 profile pictures minted as NFTs on the Ethereum blockchain.
An NFT acts like a receipt or a deed of ownership to a provably scarce digital item, and it can represent a still image, video file, video game item, and plenty more.