NFT stands for Non-Fungible Token. "Fungible" describes something where one unit can be exchanged for another, like two banknotes of the same denomination. An NFT is the opposite: each one has its own unique identifier and is not the same as any other.
What does it record?#
An NFT is usually a record on a blockchain that shows who owns a digital "object". The original file (image or video) is often not on the blockchain itself, and only a link to it is recorded. So if that file disappears from wherever it is hosted, the NFT may point to something that no longer exists.
Uses#
- Artwork and digital collectibles
- Game items and characters
- Event tickets and membership cards
- Certificates of ownership or access
Example#
It is like the serial number and artist's signature on a limited print: each copy is separate, and its ownership and history are clear.
Notes and warnings#
- Owning an NFT does not necessarily mean owning the intellectual property rights to the work
- The NFT market is full of copied works, fake sites, and predatory schemes
- Unknown messages and airdrops that invite you to a site are often meant to steal wallet assets
- The value of an NFT can disappear completely; this is not a recommendation to buy