NFT is an acronym for non-fungible token. A non-fungible tokens is a smart contract API written in a programming standard such as ERC-721. Smart contracts are programs hosted on the Ethereum blockchain’s and run on the Ethereum Virtual Machine (EVM).
Smart contracts can be used to represent real world items such as unique digital assets. These can include such assets as collectible coins, art works or even in-game items.
Although NFT ERC-721 contract tokens can be treated like currency, the underlying transactions operate very differently. We will explore in another post, how transactions work.