What is an NFT (Non-Fungible Token)?. An NFT is a unique token that proves ownership of a specific digital or physical item. Unlike fungible tokens, each NFT is distinct and traceable.
How it works
A contract mints unique token IDs and assigns them to addresses. Transfers and royalties follow on‑chain rules anyone can verify.
Why it matters
NFTs enable verifiable ownership for art, tickets, memberships, and credentials with portable, transparent records.
Common pitfalls
- Confusing image hosting with on‑chain ownership
- Buying from fake contract addresses
- Assuming liquidity is guaranteed
Quick example
A ticket issuer distributes event passes as NFTs so resale and entry validation are simple and fraud‑resistant.
See also
- Smart Contract
- Tokenization
- On‑Chain vs. Off‑Chain
TL;DR: What is an NFT (Non-Fungible Token)? defined in plain English with practical next steps.
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