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.
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
