NFT stands for non-fungible token. If something is non-fungible, this means that it cannot be replaced or exchanged for something of identical value. An example of something fungible is a current coin, such as a one pound coin, because this can be exchanged for another pound coin. It doesn’t matter which of the coins you have – you still have ?1.
Something like a painting, though, is non-fungible. That particular painting only exists once. If you bought a painting, you could take that painting and hang it up in your bedroom. It would be yours – no one else would own that exact painting.
Owning something is more tricky for digital objects, because they can be copied. For instance, if you find a picture online that you like, you can right-click it, save it in your computer, and use it as a background if you want. This is where NFTs come in.
If you bought an NFT of a digital painting from the person who made it, a record of your purchase is kept in the blockchain. The blockchain is a giant database maintained by many people in their computers, and it is almost impossible to alter. Once the blockchain keeps a record of a transaction, it’s there forever. Everyone can see that you bought the NFT – and it proves that you are the only owner of the digital painting.
So why are they expensive?
First of all, most NFTs actually have a low price. We just only get to hear about them whenever there has been a record sale. It is the same with physical art. We hear about it when someone paid millions for a painting by a famous artist like Picasso, and never about all the paintings sold for much less.
NFTs might be so expensive because of the potential they have to link with the Metaverse. The Metaverse is a virtual universe in which people would be represented by avatars and own digital space , like the digital land sold in the otherside virtual world.
Source- https://www.bayes.city.ac.uk/news-and-events/news/2022/may/what-are-nfts-and-why-are-they-so-expensive
