NFT stands for non-fungible token. It can be described as a cryptographic token that exists on a blockchain that defines an asset uniquely.
“Fungible” means something is able to replace another identical item--it is mutually interchangeable. A bitcoin is fungible--when you trade one bitcoin for another, it’s essentially the same asset. Not so with NFT-- it is coded with metadata and a unique identifier that no other token can replicate. This gives NFT the attributes of scarcity and originality, and therefore more valuable. 
NFTs can represent a digital asset such as art, collectibles, audio, video, and other forms of creative work. It can also track real-world assets, such as a car or a house, and prove ownership and authenticity over said assets. Blockchain acts as the decentralized ledger that tracks the ownership and transaction history of each unique NFT much like a provenance in traditional art.
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Surprisingly, NFTs are not new. Colored coins which appeared as early as 2012 are speculated to have laid the groundwork for NFTs. Then came the trading of Rare Pepes on Ethereum and after this the first-ever Non-Fungible Token was released named Crypto Punks. In 2017, NFTs moved into the mainstream when CryptoKitties was released on the Ethereum Blockchain. It went viral immediately and it’s said to have generated an investment of $12.5 million.

Non-fungible tokens have unique attributes; they are usually linked to a specific asset. They can be used to prove the ownership of digital items like game skins right through to the ownership of physical assets.

There are certain elements that add value to NFTs: 
a. Rarity or Scarcity- although NFT developers can make an infinite number of tokens, they’re kept limited purposefully to maintain their value.

b. Indivisibility- unlike bitcoin, NFTs can’t be split. For example, if you don’t have enough money to buy a full bitcoin, you can split it into smaller denominations, and buy only 1/10 of it. NFTs let you buy the complete cost of a digital item or buy no item at all.

c. Uniqueness- NFT points to a metadata file that defines an asset and sets it apart from other assets.

d. Non-interoperableness- Since NFTs follow the standard ERC-721 (a template or format for writing codes that other developers agree to follow), they’re considered to be non-interoperable which means the information stored in them can’t be exchanged or used in any manner.

Trustworthy- The complete data of NFT is stored securely on the blockchain which means the tokens can never be removed, destroyed, or replicated no matter what. You can trust the system without having to trust any individual contributor.
Easily transferable- they can be sold or purchased on special marketplaces.Market efficiency- a digital asset such as an NFT when compared to a physical one, streamline processes and removes intermediaries. NFTs representing digital artwork allows its artist, for instance, to connect directly with their audiences and removes the need for agents.
Ownership rights

The blockchain acts as the decentralized ledger that tracks the ownership and transaction history of each NFT, which is coded to have a unique ID and other metadata that no other token can replicate. This process gives NFTs the attributes of originality and scarcity that make them so attractive when coupled with digital media.
NFTs are coded with software code (called smart contracts) that governs aspects like verifying the ownership and managing the transferability of the NFTs. Like any software application, NFTs can be further programmed beyond the basics of ownership and transferability to also include a variety of other applications and functionality, including those linking the NFT to some other digital asset.