The acronym NFT stands for Non-Fungible Token. To fully understand what this means, we would break it down a bit. The compound word "Non-Fungible" is used to describe anything that is unique i.e cannot b replaced with something else. To draw a little bit of context, one ether (ETH) is fungible because you can exchange it for another ether and it comes down to being the same exact thing. Non-fungible items are, however, not interchangeable in the same way because they have unique properties.

The Ethereum blockchain is much like the bitcoin blockchain, however, it extends its functionality to be able to store a lot more data intrinsically. This makes it possible to store an immutable proof of ownership on the blockchain.

NFTs have a myriad of applications and have been used to represent Real-world items(e.g Tokenized invoices, signatures, legal documents), Digital art(e.g. collectibles, images, GIFs e.t.c.) which are all provable on the blockchain i.e since they cannot be tampered with, they are credible.