An NFT (non-fungible token) is a unique digital token on a blockchain that proves ownership of a specific item. Unlike regular tokens or coins, where every unit is interchangeable, every NFT has its own ID and cannot be swapped one-for-one with another. NFTs became widely known through digital art and collectibles, but the technology is also used for tickets, memberships, loyalty programmes, game items and certificates.
How does an NFT work?
- Token contract: on Ethereum and EVM chains, NFTs follow the ERC-721 standard, or ERC-1155 for collections that mix unique and identical items. Solana has its own NFT standards.
- Token ID and owner: the smart contract records which address owns which token ID.
- Metadata: each token points to metadata, such as a name, description, image and properties. This is usually stored off-chain, on a server or on IPFS.
- Transfers and marketplaces: NFTs can be sent between wallets and traded on marketplaces that read the standard.
What are NFTs used for?
- Digital art and collectibles: provable ownership and provenance of a digital work.
- Tickets and access: event tickets that are hard to forge and can carry resale rules, or access passes to a community or service.
- Loyalty and memberships: membership cards or rewards that customers actually own and can take with them.
- Gaming: in-game items that players own and can trade.
- Certificates and proof: diplomas, certificates of authenticity for physical products, or proof of attendance.
What an NFT does and doesn't give you
Owning an NFT means owning the token, not automatically the copyright of the image or work it refers to; those rights depend on the licence the creator attaches. If the metadata is stored on an ordinary server that goes offline, the token can end up pointing to nothing, which is why storage choices matter. Royalties for creators on resales are not enforced by every marketplace. And after the hype of 2021, prices of most collectibles fell sharply; the lasting value lies in practical uses such as tickets, memberships and proof of ownership. See our NFT tooling for EVM chains, Solana NFT development and ERC-721 implementation.
Frequently Asked Questions about NFTs
What does non-fungible mean?
Not interchangeable. A euro can be swapped for any other euro; a specific concert ticket for seat 12B or a specific artwork cannot be swapped one-for-one with another.
Can an NFT be copied?
The image or file can be copied, just like any digital file. The token itself, and the record of who owns it on the blockchain, cannot.
What is the difference between ERC-721 and ERC-1155?
ERC-721 is for fully unique tokens, one contract per collection. ERC-1155 can manage many token types in one contract, both unique and identical items, which is more efficient for games and tickets.
Do NFTs have to be about art?
No. Art made NFTs famous, but the same technology works for anything that benefits from provable, transferable ownership, such as tickets, memberships and certificates.