NFT

An NFT (non-fungible token) is a blockchain token that represents a unique item, so that one NFT is not interchangeable with another the way one bitcoin is interchangeable with any other bitcoin. Each NFT has its own identifier recorded on a blockchain, along with an owner address and usually a link to metadata describing what the token represents — an image, a piece of music, a game item, a membership pass, or a domain name.

For example, a digital artist can issue an edition of 100 artworks as NFTs on Ethereum; each token points to one artwork, and anyone can verify on-chain which address currently owns token number 37. Ownership transfers when the token is sent or sold, and the full history of transfers stays publicly visible.

A common misconception is that buying an NFT automatically buys the copyright to the underlying work — usually it does not; you own the token, while the rights attached to it depend on the license the creator chose. NFTs are most associated with digital art and collectibles, but the underlying idea — a transferable, verifiable record of a unique item — is also used for tickets, in-game assets, and identity credentials.