Non-fungible tokens, or NFTs, are blockchain-based digital assets that represent ownership of unique items such as artwork, music, collectibles, and virtual real estate. Unlike cryptocurrencies, which are fungible and interchangeable, NFTs have distinct metadata and identifiers that make each token one-of-a-kind. They are primarily traded on specialized marketplaces and have gained prominence in sectors like gaming, art, and entertainment, influencing digital ownership and intellectual property rights.