What is an NFT?
DefinitionAn NFT (non-fungible token) is a unique token on a blockchain that records who owns a specific item, such as a piece of digital art, a collectible, a ticket or a username. Unlike coins, one NFT can’t be swapped one-for-one for another, because each has its own identity.
How NFTs work
A coin like USDT is fungible: every unit is interchangeable. An NFT is created by a smart contract that gives each token its own ID and a link to metadata, such as a name, an image and attributes. The blockchain records which address owns each ID, and a transfer works like any other token transfer.
NFTs exist on many networks. Ethereum and other EVM chains use standards such as ERC-721 and ERC-1155, TON has its own NFT standard used for collectibles, usernames and domain names, and Solana and other chains have theirs.
What you actually own
Owning an NFT means your address holds that token ID on-chain. It doesn’t automatically give you the copyright in the artwork, and the image itself is often stored off-chain, so it can disappear if the hosting stops. What you may do with the item depends on the creator’s licence and the project’s terms.
- Digital art and collectibles
- Usernames and domain names
- Event tickets and memberships
- In-game items
Prices and liquidity
An NFT has no fixed value. Its price is whatever the next buyer will pay, and many collections trade rarely, so an NFT that once sold high can be hard to sell at any price. The floor price of a collection, the cheapest listing, can change quickly.
Risks and scams
Your NFTs are controlled by the same keys as your coins, so anyone with your recovery phrase can take them too.
- Fake collections that copy a popular one’s name and images
- Unsolicited NFTs sent to your wallet with links to scam sites
- Signing a marketplace approval on a phishing site, which lets scammers transfer your NFTs
- Paying for an item whose image or perks later disappear
