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NFTs, or non-fungible tokens, are unique digital assets that are stored on a blockchain. They are different from fungible tokens, like Bitcoin or Ethereum, because each NFT is one-of-a-kind and cannot be exchanged for another NFT at a fixed rate. This uniqueness makes NFTs ideal for representing digital art, music, videos, and other forms of creative content. NFTs have become increasingly popular in recent years, with some selling for millions of dollars at auction. The appeal of NFTs lies in their ability to provide proof of ownership and authenticity for digital content, which has traditionally been difficult to do. NFTs also allow creators to monetize their work in new ways, by selling limited edition versions or even fractional ownership.
However, there are also concerns about the environmental impact of NFTs, as the energy consumption required to create and trade them can be significant. Additionally, there are questions about the long-term value of NFTs, and whether they will retain their worth over time.