You’ve heard the term NFT recently, maybe in the past few days, in conversations about cryptocurrency or seen it online in connection with something called crypto art and you’re wondering what the deal is. Crypto art? What does that even mean? Is someone making digital paintings about Bitcoin? Well, yes, almost certainly, but that’s not what we’re going to get into here.

We’re talking about something called nonfungible tokens (NFT), something that has suddenly become incredibly popular in the crypto world. But what exactly is an NFT? How does it work? And why is it so important to crypto enthusiasts and laypeople alike?

NFT stands for non-fungible tokens. We will discuss this in more detail below.

NFTs get their name from the fact that they are nonfungible, meaning that they are not freely interchangeable with other identical items as a stable store of value.