Blockchain & Cryptocurrency Glossary

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Non-Fungible Token

1 min read
Pronunciation
[non‑fung‑uh‑buhl to‑ken]
Analogy
An NFT is like a one‑of‑a‑kind trading card—each has unique attributes and cannot be swapped one‑for‑one with another.
Definition
A unique token representing a distinct digital or physical asset, with each token having individual metadata and non‑interchangeable value.
Key Points Intro
NFTs establish digital uniqueness via:
Key Points

Unique ID: Each token has a distinct identifier and metadata URI.

Indivisibility: Cannot be split into fractional units.

Metadata: Links to JSON describing attributes and media.

Standards: ERC‑721 and ERC‑1155 define NFT interfaces.

Example
An artist mints an ERC‑721 token representing a digital painting; the token metadata includes the artwork’s IPFS link and provenance details.
Technical Deep Dive
ERC‑721 contracts implement `ownerOf`, `transferFrom`, and `tokenURI`. Metadata JSON follows the standard schema (name, description, image, attributes). ERC‑1155 allows batch transfers and semi‑fungible tokens via `safeBatchTransferFrom` and `uri` substitution patterns.
Security Warning
On‑chain metadata links can be overwritten if hosted centrally; prefer IPFS or Arweave for immutable storage.
Caveat
NFT value is subjective and illiquid; markets can be volatile.
Related Terms
ERC‑721
ERC‑1155
Metadata URI
IPFS

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