Non-fungible token (NFT) means that something can't be exchanged for another item because it is unique, one piece of art is not equal to another, each is really a unique property.

NFTs are tokens that go on a Blockchain and represent ownership of unique items.

Why it is useful? Tracking who owns an electronic digital life is tricky because it could be copied and distributed easily. So finding the original owner could be difficult since everyone may have an identical copy of a file. NFT is the answer!

Imagine you made a piece of digital art on your own computer. You can make or mint an NFT from the art. The NFT that presents your art contains some details about it, such as unique finger print of the file, a token name and a symbol. This token is then stored on a blockchain and you ,whilst the artist, are referred to as the owner.

Once you have a token, you can sell it by making a transaction on the blockchain. The blockchain makes certain that  these details cannot be cheated. Further, it allows tracking the existing owner of the token and it's value at the present or in the past. Observe that the artwork itself is not stored within the blockchain or the NFT. Only the info, the token name, symbol and optionally an url to a document hosted on IPFS are recorded. NFT is different in that after you purchase an NFT that represents artwork, you actually don't get a real copy of it. You already learned that the NFT only presents the ownership and the records on blockchain, so nobody can tamper with it.

To make it more interesting, what is an nft you should know that NFT retains the copyright and the reproduction rights. Therefore, an artist can sell her original are an NFT, though he can still sell prints.

NFTs also can be utilized to sell consert tickets, domain new, in-game items, real state and anything that is unique and needs proof ownership.

As an example, the founder of Twitter sold his very first tweet as an NFT. Although anyone can start to see the tweet on his profile, only one individual can own it, the main one who paid for it.

Now let's see why some NFTs worth millions. Like every other asset, the value is determined by what people are willing to fund it. Costs are driven by demands, so it's possible that the expensive NFT becomes worthless if it gets no attraction for buyers.

Now, let's observe NFTs work technically. Because you can already know just, NFTs are smart contracts that go on a blockchain. This contract stores the unique properties of them and keeps track of current and previous owners. More interesting, an NFT can be even programmed to offer royalties to the creator everytime it is sold. NFTs without a doubt brings the opportunity to change the art world!