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What is an NFT?

Author
CRYPTO PORT Editorial
Published
Updated
Reading time
5 min

In short

An NFT is a token that records something as a unique, non-interchangeable item. It records ownership — it does not necessarily transfer copyright.

Key points

  • A token with no identical twin
  • Ownership records and copyright are different things
  • Extremely volatile

Definition

A non-fungible token: issued in individually identifiable units.

One bitcoin is interchangeable with another; NFTs are each identified separately. That property is used to represent artwork, memberships and in-game items.

The image itself is often not stored on-chain but referenced by URL. If that reference disappears, the artwork stops displaying — worth checking before buying.

Watch out for

  • · Counterfeit collections are common — always navigate from the official contract address

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