NFT stands for non-fungible token, and it is a digital asset that represents real-world objects like art, music, GIFs, videos etc. NFTs are held on a blockchain, which is a distributed public ledger that records transactions. NFTs are generally one of a kind and have unique identifying codes, which offers its owner exclusive ownership rights. An NFT can have only one owner at a time, and it contains built-in authentication, which serves as proof of ownership. NFTs’ unique data makes it easy to verify their ownership and transfer tokens between participating parties. Holding an artwork in the form of an NFT protects the owner from possible claims.