NFT is an acronym for “non-fungible token” and you can think of it like a digital collectible, such as a trading card.
An NFT is similar to a cryptocurrency in the sense that it trades on a blockchain and has a monetary value attached to it. The difference between a cryptocurrency and an NFT though is that an NFT has certain characteristics that make it different from other NFTs, even if the two NFTs seem similar to one another.
For example, if you trade 1 bitcoin for another bitcoin, you are trading one identical thing for another. There is no loss of value on either side of the transaction — you both end up with 1 bitcoin. But if you trade 1 NFT for another NFT, they can be drastically different even if they appear to be the same. This is because an NFT includes a deeper layer of characteristics that make it different from others. These characteristics can include metadata, visuals, serial numbers, etc. and can all affect the value of the NFT based on what characteristics are valued by the people who buy and sell them.
NFTs therefore create exciting monetization opportunities for brands and collectors, as they are provably authentic, safe to trade, and can include all different types of artwork and branding opportunities.