NFT is an acronym for non-fungible token. In economics, the fungible asset is something that can be exchanged in units, such as money. A non-fungible asset has unique properties and cannot be exchanged for another.
At their most basic level, NFTs can be thought of as "Bitcoins for art." Bitcoin became the digital equivalent of money, while NFT became the digital equivalent of collectibles. Bitcoin, for example, allowed people to spend and save virtual money without the need for a central authority. Similarly, NFTs allow images, videos, music, or anything else that can be virtualized to be encased in a form that can be bought, processed, or approved without the intervention of a moral arbiter.