An NFT (non-fungible token) is a unique digital identifier recorded on a blockchain, used to certify ownership and authenticity of a digital item. Unlike interchangeable cryptocurrencies, each NFT is one of a kind. This guide explains it.
What it is
An NFT is a uniquely identifiable token recorded on a blockchain, usually referencing a digital file such as artwork, an image, video, or audio [1]. Because it is uniquely identifiable, it cannot be copied, substituted, or subdivided — in contrast to "fungible" cryptocurrencies, where each unit is equal [2].
NFT vs cryptocurrency
What it's used for
An NFT's ownership can be transferred by the holder, so it can be bought, sold, and traded [1]. It is often used for digital art, collectibles, in-game items, and event tickets, providing a verifiable record of ownership for a digital item.
The bottom line
An NFT is a unique token that certifies digital ownership and authenticity; its "non-fungibility" is what sets it apart from cryptocurrency. Understanding it helps you grasp the new concept of digital ownership. To keep learning the fundamentals, follow more from Bitbase Academy.
Related reading
Other Bitbase articles on this topic:
- What Is 3ULL? PLAYA3ULL GAMES, Its Mainnet, and w3ULL
- What Is Azuki? An NFT Collection, IP, and Holder-Rights Boundaries
- Nexpace and MapleStory Universe Explained
Disclaimer: This article is educational content from Bitbase Academy, provided for information only. It does not constitute investment, trading, tax, or financial advice. Written as of June 2026; refer to the latest official information.
References
[1] Ethereum.org, "Non-fungible tokens (NFT)." ethereum.org
[2] IBM, "What is an NFT?" ibm.com
