NFT

What’s an NFT?

A non-fungible token (NFT) is a unique unit of data on a blockchain that can be linked to digital and physical objects to provide an immutable proof of ownership.

The data an NFT contains can be tied to digital images, songs, videos, avatars, and more. However, they can also be used to give an NFT owner access to exclusive merchandise, tickets to live or digital events, or be linked to physical assets like cars, yachts, and much more.

In this respect, NFTs allow individuals to create, buy, and sell items in an easily verifiable way using blockchain technology. But bear in mind that, unless otherwise stated, you’re not buying the copyright, intellectual property rights, or commercial rights to any underlying assets when you buy an NFT. However, all the legal details can get pretty complicated, so we’ll dive into this more in subsequent sections.

When it comes to creating and selling NFTs, the process is really rather simple. It works like this:

An individual (or company) selects a unique asset to sell as an NFT.
They add the object to a blockchain that supports NFTs through a process called “minting,” which creates the NFT.
The NFT now represents that item on the blockchain, verifying proof of ownership in an immutable record.
The NFT can be kept as part of a private collection, or it can be bought, sold, and traded using NFT marketplaces and auctions.
As you might imagine, the technical definition is a bit more convoluted. If you’re interested in that kind of breakdown, our NFT dictionary gives you a comprehensive overview of all the technology and infrastructure in the NFT ecosystem.