What is NFT?
Last reviewed 2026-05-03
Used by: OKX NFT
Entity coverage: 1 protocol, 0 tokens, 0 chains reference this concept.
A non-fungible token is a unique on-chain asset, typically ERC-721 or ERC-1155 on EVM chains. Use cases: digital art (Punks, Bored Apes), in-game items, domain names (ENS), tickets, and tokenized real-world goods.
How it works
An NFT collection is a smart contract, most often implementing the ERC-721 or ERC-1155 standard, that maintains a ledger mapping each unique token ID to its current owner address. Minting calls the contract to create a new token ID and assign it to the minter's wallet, usually for a fee plus gas.
The token itself stores very little. A tokenURI field points to a metadata file — name, description, traits, and a link to the image or media — hosted on IPFS, Arweave, or an ordinary web server, though fully on-chain projects encode the artwork directly in contract storage.
Transfers call the contract's transfer function, which the network only accepts if signed by the current owner or an approved operator. Marketplaces rely on that approval mechanism: you grant the marketplace contract permission to move the token, and when a buyer matches your listing it swaps the NFT for payment atomically in one transaction. Anyone can copy the image, but only the address recorded in the contract controls the token — that ownership mapping is what is actually bought and sold.
Why it matters
NFTs codify ownership of digital scarcity: art, identity, in-game items, tickets, real-world goods. Underrated as a "primitive" beyond the JPEG meme.
Real-world examples
CryptoPunks, Bored Ape Yacht Club, Pudgy Penguins, Art Blocks, ENS domains, Gods Unchained cards.
Related terms
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