What is an NFT
NFT (non-fungible token) is a type of token that represents a unique digital item.
Each NFT has a unique identifier and cannot be replaced by another token.
Key facts about NFTs
- represent unique digital items
- created using smart contracts
- widely used for digital art and collectibles
NFT explained simply
An NFT is a token that proves ownership of a unique digital asset.
How NFTs work
NFTs are created on a blockchain through smart contracts.
The typical process includes:
- minting the NFT
- recording ownership data on the blockchain
- trading NFTs on marketplaces
Examples of NFT use cases
NFTs are commonly used for:
- digital art
- in-game items
- collectibles
- digital ownership rights
How NFTs differ from other tokens
- Utility tokens provide access to services
- Governance tokens enable protocol governance
- Security tokens represent investment rights
- LP tokens represent shares in liquidity pools
- Meme tokens are driven by internet culture
NFTs represent unique digital assets rather than interchangeable tokens.
How NFTs relate to blockchain
NFTs rely on:
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Related concepts
FAQ
How is an NFT different from a regular token?
NFTs are unique and cannot be exchanged one-to-one like standard tokens.
Where can NFTs be bought?
NFTs can be bought and sold on NFT marketplaces.
Can an NFT be copied?
The digital file can be copied, but ownership is verified through the blockchain.
Which blockchains support NFTs?
Most NFTs are created on Ethereum and other smart-contract blockchains.