Like any technology, NFTs can provide more efficient ways of doing business. For example, they work with a crypto technology called a blockchain. It is a distributed ledger of digital records that do not necessarily require a central system to run. Transactions can potentially be faster and easier.
In addition, the blockchain also keeps a record of all NFT-related transactions and the properties it represents. For example, when selling works of art, this could mean the origin of something going back to the creator. The chain can also contain a list of all users who have ever owned this token.
NFTs can also include so-called smart contracts or encoded elements that can automatically perform actions under certain conditions. The concept represents an automated and self-contained set of rules that cannot be ignored or skipped.