NFTs are typically built on blockchain technology, most commonly using the Ethereum blockchain, which provides a decentralized and transparent ledger to track ownership and transactions. This technology ensures the scarcity and immutability of the digital asset.

NFTs have gained significant popularity in recent years, particularly in the art world, where digital art pieces can be tokenized as NFTs and sold directly to collectors. This allows artists to generate revenue from their digital creations, while buyers can own a unique piece of art with proof of ownership.

Besides art, NFTs have also been used in various other industries, including music, virtual real estate, gaming, collectibles, and even real-world assets like real estate or luxury goods. They offer new opportunities for creators, collectors, and investors alike, as they enable the creation, sale, and ownership of unique digital assets with verifiable scarcity and provenance.