What Is an NFT?
Non-fungible tokens, and what 'owning' one really means.
You’ll cover
Fungible vs non-fungible
One dollar is interchangeable with any other dollar - that's fungibility. A specific painting is not interchangeable with another; it's unique. NFTs bring that uniqueness on-chain: each token has its own identity and can't be swapped one-for-one with another.
That makes NFTs a natural fit for representing specific things: a piece of art, a ticket, a username, an in-game item, or a membership pass.
What you actually own
An NFT is usually a token whose contract records you as the owner of a particular item ID, plus a link to metadata (an image, traits, etc.). The artwork itself often lives off-chain; the token proves which one is 'yours' on the ledger.
So owning an NFT means the blockchain agrees you hold that token - it does not automatically grant copyright or stop others from copying the image. Rights depend on what the project actually promises.
Remember
Owning the token ≠ owning the copyright. Read what the collection's terms actually grant.
Self-check
Check your understanding
Try each question before opening the answer.
What does 'non-fungible' mean?
- A.Worth nothing
- B.Each unit is unique and not interchangeable one-for-one
- C.Cannot be sold
- D.Backed by gold
Reveal answer
B. Each unit is unique and not interchangeable one-for-one
Non-fungible means each token is distinct - unlike dollars or ERC-20 tokens, you can't swap one for an identical other.
Owning an NFT of an image means…
- A.You automatically own the copyright
- B.The ledger records you as holder of that token; rights depend on the project's terms
- C.No one else can view the image
- D.You own the whole blockchain
Reveal answer
B. The ledger records you as holder of that token; rights depend on the project's terms
Ownership is recorded on-chain, but copyright and usage rights are separate and depend on what the project grants.