NFTs, or non-fungible tokens, are a type of digital asset that is unique and cannot be replaced or exchanged for another asset of the same type. This is in contrast to traditional cryptocurrencies like Bitcoin, which are interchangeable and can be easily traded for other cryptocurrencies or fiat currencies. NFTs are typically used to represent unique items such as digital art, collectibles, and other digital assets. They are often built on blockchain technology, which allows for secure and transparent ownership verification.