NFT (Non-Fungible Token)
In short: An NFT (non-fungible token) is a unique digital asset recorded on a blockchain. Unlike coins, where every unit is interchangeable with any other, each…
An NFT (non-fungible token) is a unique digital asset recorded on a blockchain. Unlike coins, where every unit is interchangeable with any other, each NFT has its own identifier and cannot be swapped one-for-one with another token.
Why it matters
NFTs make it possible to prove ownership of a specific digital item, such as artwork, a collectible, an in-game item, a ticket, or a domain name, and to transfer it without a middleman. Most NFTs follow token standards such as ERC-721 or ERC-1155. The token usually points to its content through metadata, and the file itself is often stored off-chain, so owning the token does not by itself ensure the file stays online. Buying an NFT also does not automatically grant copyright in the underlying work, which depends on the terms attached to it.
Example
An artist creates a digital illustration and mints it as an NFT. The blockchain records the new token and the artist’s address that created it, and the token’s metadata links to the image file. A collector buys it on an NFT marketplace, and the token moves to the collector’s wallet, where anyone can confirm on-chain who holds it. If the collector resells it later, that transfer is recorded in the same way.