Non-fungible tokens (NFTs) represent unique digital items like art, music, videos, and collectibles stored on a blockchain. NFTs have grown in popularity as a way to authenticate ownership of digital works and enable creators to earn royalties from subsequent sales. Recent high-profile NFT sales include a Grimes video that sold for $390,000 and digital art by Paris Hilton. Proponents believe NFTs could transform markets like art collecting and gaming by allowing digital assets to be scarce and owned. However, challenges include establishing liquid markets and regulating new types of digital property.