Step 2 What is an NFT by definition?

It is a non-fungible token and provides a unique record of ownership of a digital asset held on a decentralized database and cannot be falsified. When an artist creates digital art and sells a work of art as an NFT, the buyer will really pay for the token that proves the ownership. An Art-NFT is a unique digital collectible secured by the blockchain. The psychology behind collecting explains why anyone would be prepared to pay a lot of money for an NFT even though you can download digital art with a click of your mouse. People want to own scarce collectibles, and blockchain technology provides such guarantee of ownership.