NFT
An NFT (non-fungible token) is a unique token on a blockchain that can represent a specific item, such as a piece of digital art, a game item, a ticket or a membership, and records who currently holds it.
What non-fungible means
Fungible things are interchangeable: one euro coin is as good as another, and one bitcoin equals any other bitcoin. Non-fungible things are unique: a concert ticket for seat 12F is not the same as one for seat 30A. An NFT applies that idea to tokens. Each one has its own ID in a smart contract, so it can stand for one specific thing.
On Ethereum, NFTs usually follow the ERC-721 or ERC-1155 standards. Other chains, such as Solana, have their own formats.
What you actually own
Owning an NFT means your address is recorded as the holder of that token ID. The image or file is usually stored elsewhere and linked through metadata. Copyright and usage rights stay with the creator unless a license grants them to you. In other words, an NFT is closer to a signed certificate than to the artwork itself.
How NFTs are used
Digital art and collectibles made NFTs widely known during the 2021 boom. Other uses include in-game items that players can trade, event tickets, domain names such as ENS names, membership passes, and proofs of attendance. Some projects use NFTs to represent claims on physical goods, which only works if someone off-chain honors that claim.
Risks and common mistakes
NFT markets are often illiquid: there may be no buyer at any price when you want to sell. Prices after the 2021 to 2022 peak fell sharply for many collections. Wash trading, where the same person buys and sells to inflate volume, can make activity look larger than it is.
Scams are common: fake mint sites, copied collections and phishing links that ask you to sign approvals giving away your NFTs. Metadata on a centralized server can disappear. Treat any unsolicited offer or free mint with suspicion.
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Frequently asked questions
Does buying an NFT give me the copyright?
Usually not. Rights depend on the license the creator attaches; many grant only personal display rights.
Can an NFT be copied?
The image can be copied, but the token itself, with its ID and on-chain history, cannot be duplicated in the original contract.
Are NFTs only for art?
No. They are used for tickets, game items, domain names and memberships, anywhere a unique, transferable record is useful.
Related terms
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