Non-fungible tokens, often known as NFTs, are a type of digital asset that serve as proof of ownership or validity for a particular good or piece of content. According to Simplilearn, due to their unique properties, NFTs are different from conventional cryptocurrencies like Bitcoin in that NFTs cannot be replaced or interchanged.
Imagine you possess a valuable piece of signed sports memorabilia as an example. Since it is one of a kind, it cannot be changed to a comparable item. Similarly, NFTs certify the uniqueness and ownership of a particular item or piece of content, whether it be a digital work of art, a collectible, or even virtual real estate.
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