Non-Fungible Tokens (NFTs) are unique digital assets that are stored on a blockchain, which is a decentralized digital ledger. Unlike cryptocurrencies like Bitcoin, which are fungible (meaning that one Bitcoin is interchangeable with another), each NFT is unique and non-interchangeable. NFTs can represent various types of digital items, such as artwork, collectibles, music, videos, and even virtual real estate in metaverse environments.

The main characteristics of NFTs are:

1. Uniqueness: Each NFT is a unique digital asset with its own metadata and characteristics, ensuring its scarcity and non-interchangeability.

2. Ownership: NFTs provide verifiable ownership and provenance of the digital asset they represent. The ownership record is stored on the blockchain, making it transparent and immutable.

3. Indivisibility: NFTs cannot be divided or split into smaller units, unlike cryptocurrencies. They are whole and indivisible assets.

4. Transferability: NFTs can be easily transferred between blockchain wallets, allowing for the buying, selling, and trading of these digital assets on specialized NFT marketplaces.

NFTs have gained significant popularity in various industries, particularly in the digital art and collectibles space. They enable artists and creators to monetize their work by creating and selling unique digital assets. Collectors and enthusiasts can purchase and trade NFTs, with the blockchain providing a transparent record of ownership and authenticity.

However, it's important to note that the value of an NFT is subjective and often driven by scarcity, perceived value, and market demand. While some NFTs have sold for millions of dollars, others may have little or no value, similar to traditional art and collectibles markets.