NFT (non-fungible token)
Definition
A unique, non-interchangeable blockchain token, commonly following the ERC-721 standard, used to represent ownership of a specific digital or physical item.
A non-fungible token (NFT) is a blockchain token that is unique and not interchangeable with any other, in contrast to fungible tokens where every unit is identical. On Ethereum, NFTs commonly follow the ERC-721 standard, with ERC-1155 supporting mixed fungible and non-fungible items. Each NFT carries a distinct identifier and can point to metadata describing an artwork, collectible, membership, or other specific item.
Why it matters
NFTs provide a verifiable, publicly auditable record of who holds a particular token, which is useful for digital ownership, ticketing, and provenance. Understanding what the token actually records is essential for security: the on-chain entry proves control of the token, but the associated image or file is often stored elsewhere. Scams frequently exploit this gap, along with fake collections and malicious approval requests that drain wallets. If the metadata or the file it points to is hosted on an ordinary server that later goes offline, the token can end up referencing nothing, which is why some projects use content-addressed or decentralised storage to make the link more durable.
Common misunderstanding
Owning an NFT is often assumed to mean owning the copyright to the underlying art or that the artwork itself lives on the blockchain. Usually the token records ownership of a pointer, not the file, and confers no copyright unless a separate licence grants it. What you truly hold is the token, governed by its contract, along with whatever rights the project chooses to attach to it off-chain.
Related terms
See ERC-20, blockchain, dApp and blind signing.
Frequently asked questions
Does owning an NFT mean I own the artwork's copyright?
Note: CamoCrypt is security & education only — no prices, no predictions, no investment advice. Verify every address and contract yourself; we cannot recover lost funds and neither can anyone who contacts you claiming they can.