An NFT (Non-Fungible Token) is a unique digital item that you can buy or sell. It could be digital art, music, or even a virtual game item. The key thing is that it’s one-of-a-kind, like owning a rare trading card or painting online.

• Non-fungible means it’s unique and can’t be replaced by something else.
• People often buy and sell NFTs as digital collectibles.

The blockchain is like a secure, public record book. It’s where all transactions involving NFTs are stored.

• Blockchain keeps track of who owns what, when items were bought or sold, and makes sure everything is recorded securely.
• When you buy or sell an NFT, the blockchain automatically updates with this information, so there’s a permanent, trustworthy record.

A smart contract is a digital agreement that automatically happens when certain conditions are met, all without needing a person to manually make it happen.

• How it works: When you buy an NFT, a smart contract could automatically transfer the ownership of that NFT to you and send the money to the seller, without anyone having to do it by hand.
• Automated and Trustworthy: Smart contracts are built into the blockchain, so they automatically execute transactions based on rules that everyone agrees to upfront. For example, “if someone buys this NFT for $100, transfer ownership and split the money 50/50 between the artist and a charity.”

• Ownership: The blockchain makes sure there’s proof of who owns the NFT, and this ownership can’t be faked.
• Security: Smart contracts make transactions quick and automatic, so no one needs to worry about whether the other party will follow through.
• Transparency: Everything is public and can be verified, so you can trust that the transaction is fair.