NFT

An NFT (non-fungible token) is a unique blockchain token that represents ownership of a specific item. Unlike a cryptocurrency, where every unit is interchangeable, each NFT is one of a kind and cannot be swapped one-for-one with another.

How it works

An NFT is created, or “minted,” by a smart contract that records who owns a particular token ID. The token usually points to metadata — an image, video, document or in-game item — and the blockchain provides a public, verifiable record of ownership and transfer history. Ownership of the token does not automatically transfer copyright in the underlying work.

Why it matters

NFTs introduced a standard way to prove digital scarcity and ownership, with applications in art, collectibles, gaming, event ticketing and identity. Their value is highly subjective and market-driven, and the convenience of off-chain metadata can be a weak point if it is not stored durably.

Example

A digital artwork sold as an NFT records the buyer’s address on-chain as the current owner of that specific token.