NFT (non-fungible token)

An NFT is a token that is unique and not interchangeable with others, unlike one bitcoin or one rupee, which are each identical to the next. On Ethereum, NFTs typically follow the ERC-721 or ERC-1155 standards, and each has its own ID within a contract.

NFTs record on a blockchain who owns a particular token. They are used for digital art, collectibles, in-game items, event tickets, domain names and membership passes. The image or file an NFT refers to is often stored off-chain, and buying an NFT does not automatically give you copyright in the artwork. Check the licence terms.

The NFT market boomed in 2021 and fell sharply afterwards. Many collections now trade far below their peak or have no buyers at all.