Non-fungible Token (NFT)
A unique on-chain token representing distinct assets, rights, or collectibles.
A Non-fungible Token (NFT) is a token standard for representing unique items—each token has distinct identity or metadata. Unlike fungible tokens where any unit is interchangeable, NFTs are not mutually interchangeable.
"A digital art collectible minted as an NFT has a unique token ID and metadata that identifies the piece, owner, and provenance."
NFT metadata typically includes links to content, traits, or attributes. While many ecosystems reference off-chain storage, decentralized storage like IPFS is preferred to minimize reliance on centralized hosts.
"An NFT might store a hash and IPFS CID to verify the integrity of an image file without relying on a single server."
Use cases include collectibles, gaming assets, event tickets, identity, and tokenized real-world assets. On low-fee chains like Bitcoin Cash, NFTs can be transferred cheaply and quickly.
"Game items represented as NFTs can be traded between players without a centralized marketplace taking custody."
Related Terms
Token
→Tokens are programmable digital assets residing on a blockchain, often representing a variety of tangible and intangible assets.
Fungible Token
→A token where each unit is interchangeable with any other unit of the same type, like currency.
IPFS
→IPFS is a peer-to-peer network for storing and sharing files using content-addressing, where data is retrieved by its hash rather than a location.
All terms and definitions may update as the Cryptionary improves.
