NFT is an acronym for Non-Fungible-Token. Substitutability is most easily demonstrated in the world of money. A banknote or coin can be replaced by another banknote of the same value or by several banknotes or coins of a lower value without any loss of value during the transaction. In contrast, an NFT contains information that distinguishes it from all other NFTs and therefore cannot be substituted for a unique asset. The uniqueness or, if you like, the irreplicability of NFTs comes from the underlying system, the blockchain system. In a blockchain system, the devices that can be sent digitally between two parties are commonly referred to as “tokens”.
NFTs consist of software code in the form of “smart contracts” that directly control the transfer of digital currencies or assets between parties under certain conditions. Once the smart contract code is written, it is permanently incorporated into a blockchain token, which serves as a non-reproducible digital certificate of ownership of the digital creative.
The most popular use of NFTs is in the arts. In the world of art, the problem of pricing often arises because it is difficult to determine whether a given work of art is an original, and therefore of established value, or whether it is a well-executed copy, a fraction of its value.
The properties of the NFT may make it suitable for creating security in the art world.
Before the advent of NFTs, artists or creators had to contend with a myriad of problems to generate revenue from their digital creative works, as copies could be made in infinite numbers, easily produced and distributed on the internet without any degradation in quality. NFTs, however, allow creators to create an uncopyable and finite product. The method is simple: the creator creates the work, digitizes it, and then uses the blockchain technology described above to create a virtual token (NFT) from the digitized work.
The code hidden in the NFT provides the creator with several solutions, for example, he can require automatic payment of royalties from resale transactions and proof of ownership, set the sale price, and the maximum number of copies of the digital creative work that can be sold. This allows the creator of the NFT to determine the scarcity of his work and artificially increase the value of the NFT in the initial and resale market, similar to a lithograph whose value increases due to a limited number of prints.
In addition, NFTs can spare creators the losses associated with counterfeiting, as NFTs cannot be reproduced.

NFTs also provide an easier transfer of digital creative assets compared to traditional sales models, as NFTs can be sold in any online marketplace without an intermediary, rather than being limited to third-party platforms for content distribution. This brings us back to the original purpose of the blockchain, which is to offer a decentralized solution serving individual parties in a centralized system governed by the powerful, whether in financial systems or the world of art.