NFT (Non-Fungible Token)
A token that represents a unique item rather than an interchangeable unit of currency.
✦ Key Insight
NFTs are the standard mechanism for representing unique on-chain assets, and they carry a different risk profile — illiquidity, wide spreads, and dependence on off-chain storage.
✕ Common Misconceptions
Assuming ownership of the NFT means ownership of copyright — usually it does not. Also failing to check where metadata is hosted; if it sits on a server that goes offline, the token points at nothing.
Detailed Explanation
In Practice
Dig Deeper
Wallet
Software or hardware that stores your private keys and lets you sign transactions.
Token
An asset created by a smart contract on an existing blockchain rather than being that blockchain's native currency.
Blockchain
A shared, append-only record of transactions maintained by many independent computers at once.
Transaction
A blockchain transaction is a signed or authorized instruction that changes blockchain state or transfers value when accepted by the network.