An NFT is a non-fungible token: a distinct token recorded through a blockchain system. A token can have its own identifier and a record of transfers. That technical record is different from a claim about a linked image, physical object, copyright or value.
NFTs are often discussed in connection with art, games and digital collecting. The word describes a type of token. It does not say what rights come with it.
What “non-fungible” means
Fungible units of the same type are interchangeable. Non-fungible tokens are individually distinguishable. The ERC-721 standard on Ethereum is one well-known technical standard for tracking and transferring distinct token identifiers.
Distinct does not necessarily mean unique in the ordinary collecting sense. A token identifier distinguishes a token within a particular system. It does not prove that a related image, file or object is the only one in existence.
The token and the linked item are separate
An NFT may be associated with, link to or provide access to a digital or physical item. The token is not automatically the same thing as that item. A blockchain record may show activity for a token, but it does not by itself prove who created an associated work or whether a linked item is genuine.
NFT ownership and copyright
Being recorded as the holder of an NFT is not the same as owning copyright in a work connected with it. Copyright and other rights depend on the applicable law and any relevant licence or contract. The UK Intellectual Property Office-commissioned research on IP and metaverses discusses the wider uncertainty and complexity around these issues.
What the record does not prove
An NFT record does not automatically establish authenticity, legal title, rarity, demand, condition, safety or monetary value. It is better to treat technical identity and collecting claims as separate questions.
This matters for collectors because digital provenance and physical provenance are not the same. Read our physical Bitcoin coins guide for a related example of why a digital claim and a physical object need separate checks.
Sources and scope
Sources: ERC-721: Non-Fungible Token Standard and the UK IPO-commissioned IP and Metaverse(s) research report. This is educational information, not financial, tax or legal advice. Source check: 15 September 2026. Report corrections through The Coin Expert contact page.