An NFT (Non-Fungible Token) is a unique digital asset recorded on a blockchain. Unlike cryptocurrencies such as Bitcoin or Ethereum, which are fungible (meaning one unit is identical to another), each NFT is one-of-a-kind and cannot be exchanged on a one-to-one basis with another NFT.
NFTs are created through smart contracts, most commonly on the Ethereum blockchain. They serve as a digital certificate of ownership and authenticity for a wide range of items:
- Digital art – Artworks, illustrations, and generative art collections.
- Music and video – Songs, albums, and short clips.
- Gaming items – In-game skins, characters, and virtual land.
- Collectibles – Trading cards, profile pictures (PFPs), and sports memorabilia.
- Real-world assets – NFTs can represent ownership of physical items. Learn more about RWA tokenization.
NFTs are bought and sold on marketplaces like OpenSea and Blur, typically using ETH. When you purchase an NFT, the transaction is recorded on the blockchain, proving your ownership. You store NFTs in a compatible crypto wallet such as MetaMask.
Keep in mind that NFT markets can be highly speculative. Many NFTs lose value quickly, so research the project and its community before buying.