NFT (Non-Fungible Token)
CryptoGlossary term
Definition
A unique digital asset stored on a blockchain that represents ownership of a specific item such as artwork, music, collectibles, or virtual real estate. Unlike cryptocurrencies, NFTs are not interchangeable because each one has distinct properties and value. They use smart contracts to verify authenticity and track ownership history.
Related terms
- Smart ContractA self-executing program stored on a blockchain that automatically enforces the terms of an agreement when predetermined conditions are met. Smart contracts eliminate the need for intermediaries by running code that is transparent and cannot be altered once deployed. They are the foundation of DeFi applications, NFTs, and many other blockchain-based services.
- EthereumA decentralized blockchain platform that enables developers to build and deploy smart contracts and decentralized applications (dApps). Unlike Bitcoin, which primarily serves as a digital currency, Ethereum provides a programmable platform powered by its native cryptocurrency, Ether (ETH). It transitioned from Proof of Work to Proof of Stake in 2022 to improve energy efficiency and scalability.
- TokenA digital asset created on an existing blockchain rather than on its own native blockchain. Tokens can represent a wide variety of assets or utilities, including voting rights, access to services, or ownership stakes in a project. They are commonly built on platforms like Ethereum using standards such as ERC-20 for fungible tokens or ERC-721 for NFTs.
- BlockchainA distributed digital ledger that records transactions across a network of computers in a way that makes the data nearly impossible to alter retroactively. Each block contains a set of transactions and is cryptographically linked to the previous block, forming a chain. This technology provides transparency, security, and decentralization without requiring a central authority.
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