Glossary — Blockchain & Crypto Fundamentals
What is NFT (Non-Fungible Token)?
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A Non-Fungible Token (NFT) is a unique digital asset on a blockchain where each token has distinct properties and cannot be exchanged one-for-one — enabling provable ownership of digital items.
WHY IT MATTERS
Unlike fungible tokens (one USDC = any other USDC), each NFT is unique. ERC-721 established the pattern: unique ID, distinct metadata, and ownership history on-chain.
NFTs proved digital scarcity works. They don't prevent copying, but they provide verifiable ownership — the blockchain records who owns the 'original.'
Beyond art, NFTs apply to gaming, music royalties, identity credentials, real estate, and access control (token-gated communities).
FREQUENTLY ASKED QUESTIONS
What gives an NFT value?
Scarcity, cultural significance, creator reputation, community, and utility — same as any collectible. The NFT proves ownership; the market determines value.
Where is the image stored?
The NFT on-chain contains a pointer to media. The media itself lives on IPFS, Arweave, or traditional servers. On-chain storage is too expensive for large files.
Are NFTs dead?
The speculative bubble cooled, but the technology continues evolving. Gaming, identity, and access control use cases are growing. The tech is sound; the market needed maturation.