What is Non-Fungible Token? A Complete Introduction to NFT

Amidst the massive DePIN and RWA narratives that are currently sweeping the crypto world, one of the digital asset narratives that had previously declined in popularity has now re-emerged, namely non-fungible tokens.

What are non-fungible tokens, what are crypto investors' reviews of non-fungible tokens, and what are the most influential non-fungible token lists today?

In this article, you will get a complete review of non-fungible tokens, from definitions to reviews to lists.

What is Non-Fungible Token (NFT)?

A Non-Fungible Token (NFT) is a type of digital asset that exists on a blockchain and represents ownership of a unique item or piece of content. 

Unlike cryptocurrencies such as Bitcoin or Ethereum, which are fungible, meaning each unit is the same as every other unit, NFTs are non-fungible, meaning each one is distinct and cannot be exchanged on a one-to-one basis with another. 

This uniqueness is what gives NFTs their value.

The core idea behind NFTs lies in their ability to authenticate and verify digital ownership. Each NFT contains metadata and identifiers that distinguish it from any other token. 

These are stored securely on a blockchain, which serves as a decentralized ledger. Because of this, NFTs cannot be duplicated, altered, or destroyed, ensuring that the original ownership and history of the digital asset can always be traced.

NFTs are commonly associated with digital items such as artwork, music, videos, virtual real estate, collectibles, and even in-game assets. 

When someone creates or "mints" an NFT, they are essentially publishing a record of ownership and originality on the blockchain.

Read Also: How NFT Treasure Works: A Quick but Complete Guide

In summary, a Non-Fungible Token is a digital certificate of uniqueness and ownership, made possible by blockchain technology. 

It enables creators and buyers to prove the authenticity and exclusivity of digital content in a way that was never possible before.

How Non-Fungible Tokens Work?

NFTs work by turning digital content into blockchain-based tokens that can be uniquely identified, owned, and traded. 

Blockchain secures this process by recording the token’s details and ownership history, providing a reliable system for digital authenticity and scarcity.

Here’s how Non-Fungible Tokens work?

1. Blockchain Technology as the Foundation

NFTs operate on a blockchain, a decentralized digital ledger that records transactions and data.

The most common blockchain for NFTs is Ethereum, though others like Solana, Polygon, and BNB Chain also support them.

When an NFT is created, or minted, it becomes a permanent entry on this blockchain. This entry contains important information like:

• A unique ID for the NFT
• The creator’s wallet address
• A link to the digital file (such as an image or video)
• Ownership and transaction history

2. Digital Content is Tokenized

Let’s say an artist creates a digital painting. Instead of just uploading it to the internet where it can be copied freely, the artist can mint it as an NFT.

This minting process:

• Wraps the artwork in a blockchain-based token
• Creates a digital certificate of ownership
• Assigns it a unique token ID that is traceable forever

The digital file itself (image, music, etc.) usually isn’t stored directly on the blockchain due to size limits. 

Instead, the token holds a link to the file, often stored on decentralized storage like IPFS (InterPlanetary File System).

3. Buying, Selling, and Ownership Transfer

NFTs can be bought and sold using cryptocurrency (typically ETH). This happens through NFT marketplaces such as:

• OpenSea
• Blur
• Magic Eden
• Rarible

When someone buys an NFT:

• The token is transferred from the seller’s wallet to the buyer’s wallet
• The blockchain updates the ownership record
• The new owner can then hold, display, sell, or use the NFT (e.g., in games or metaverse spaces)

Read Also: Magic Eden - Getting to Know the NFT Marketplace

4. Proof of Authenticity and Scarcity

The blockchain ensures that:

• The NFT is authentic (you can trace it back to the original creator)
• The number of copies is limited (e.g., 1 of 1 or editioned as 1 of 100)
• Ownership is transparent and secure, making it impossible to fake or forge

Non-Fungible Token vs Fungible Token

A Non-Fungible Token (NFT) and a Fungible Token are both types of digital assets stored on a blockchain, but they serve very different purposes based on their core properties: uniqueness vs. interchangeability.

Fungible Token: Interchangeable and Identical

A Fungible Token is a digital asset that is interchangeable with any other token of the same type and value. Each unit is identical and equal, just like traditional money. For example:

• 1 Bitcoin is always equal in value to another 1 Bitcoin.
• 10 USDT (Tether) in your wallet is the same as 10 USDT in someone else’s.

These tokens are mainly used for:

• Payments
• Trading
• Storing value
• Decentralized finance (DeFi)

They are built using standards like ERC-20 on Ethereum.

Non-Fungible Token (NFT): Unique and Irreplaceable

A Non-Fungible Token, on the other hand, is unique and cannot be exchanged on a one-to-one basis with another NFT. Each NFT has:

• Its own identity, often tied to a digital item (art, music, collectibles, etc.)
• Metadata that makes it different from every other NFT
• A unique value, depending on rarity, creator, and demand

They are typically used for:

• Digital art and collectibles
• Music and videos
• In-game assets
• Virtual real estate
• Certificates of ownership

NFTs use token standards like ERC-721 or ERC-1155.

List of Most Popular Non-Fungible Tokens (NFTs)

The NFT landscape has rapidly evolved, with several standout collections defining the culture, creativity, and economy of the space. 

Among the most recognized and influential are Bored Ape Yacht Club, CryptoPunks, Mutant Ape Yacht Club, and Art Blocks, each playing a unique role in shaping the NFT market.

1. Bored Ape Yacht Club (BAYC)

Bored Ape Yacht Club is one of the most well-known NFT collections in the world. It features a series of cartoon-style apes, each with a unique combination of traits such as hats, glasses, clothes, and backgrounds. 

Beyond being digital collectibles, owning a Bored Ape grants access to exclusive events, communities, and real-world perks. Created by Yuga Labs, BAYC has become a symbol of elite status in the NFT world.

2. CryptoPunks

CryptoPunks is one of the earliest NFT projects, launched in 2017 by Larva Labs. Each of the 10,000 pixel-art characters is algorithmically generated with unique features like mohawks, beards, and 3D glasses. 

These punks have become iconic in the crypto space, often selling for hundreds of thousands to millions of dollars, and are regarded as historic digital assets.

Read Also: 96% of NFTs Are Dead - Is the Hype Really Over?

3. Mutant Ape Yacht Club (MAYC)

Mutant Ape Yacht Club is a spin-off collection of the Bored Ape Yacht Club, introduced to expand the community. 

Each Mutant Ape is a twisted, mutated version of a Bored Ape, created either through a "Mutant Serum" or minted directly. 

MAYC retains strong value and popularity, offering a more accessible entry point into the Yuga Labs ecosystem.

5. Art Blocks

Art Blocks is a platform focused on generative art, where each NFT is created algorithmically through code at the time of minting. 

Artists provide a script, and the output is different for every buyer. Art Blocks includes a variety of curated projects and is respected for its artistic innovation and cultural contribution to digital art.

Non-Fungible Token Review

Non-Fungible Tokens (NFTs) have captured the attention of some of the most influential voices in the Web3 space, who view them not just as digital collectibles but as revolutionary tools for ownership, creativity, and community building. 

Influencers like Gary Vaynerchuk (Gary Vee) emphasize that NFTs are far more than digital images; they are powerful instruments for brand engagement, access to exclusive experiences, and long-term value creation. 

Through his VeeFriends project, Gary Vee has showcased how NFTs can serve as membership tokens, offering tangible benefits beyond visual appeal.

Digital artist Beeple, who made headlines with his $69 million NFT sale, sees NFTs as a breakthrough in digital art history. 

For him, blockchain technology enables authenticity, traceability, and monetization that artists never had before. His stance reinforces the idea that NFTs give digital content creators control over their work in a way that was previously impossible.

NFT commentator Farokh, the founder of Rug Radio, considers NFTs as an empowering tool for creators and independent media. 

He stresses the role of NFTs in decentralizing content ownership and building loyal online communities. Similarly, Zeneca, an educator and investor, takes a more cautious yet optimistic view, recognizing NFTs’ potential in sectors like gaming, real estate, and digital identity. 

He frequently urges newcomers to be aware of risks such as scams and hype-driven projects, advocating for research and utility-based investments.

Well-known collector Pranksy adds a pragmatic lens to the NFT space, combining appreciation for digital art with a deep understanding of NFT economics. 

He values transparency, innovation, and the cultural relevance of collections like Bored Ape Yacht Club and Art Blocks, but remains critical of projects lacking substance.

Together, these influencer perspectives converge on a shared belief: NFTs are not just a trend but a foundational shift in how digital value, ownership, and community are structured. 

While the market continues to mature, they agree that the technology behind NFTs holds long-term promise—if built with integrity, purpose, and user engagement at its core.

How to Buy Non-Fungible Token (NFT)

1. Create a Crypto Wallet

To begin, you need a digital wallet to store both your cryptocurrency and NFTs. Popular choices include MetaMask, Coinbase Wallet, and Trust Wallet. 

After setting it up, you'll receive a secret recovery phrase—this is crucial for wallet recovery. Store it in a safe place and never share it with anyone.

2. Buy Cryptocurrency (Usually Ethereum)

Most NFTs are purchased using Ethereum (ETH). To get ETH, register on a crypto exchange like Binance, Coinbase, or Kraken. 

After purchasing, transfer the ETH to your wallet by copying your wallet address and using the "withdraw" or "send" function on the exchange.

3. Choose an NFT Marketplace

Visit an NFT marketplace such as OpenSea, Blur, Rarible, or Magic Eden. These platforms allow you to explore and buy NFTs. Click on "Connect Wallet" to sign in with your wallet and interact with the marketplace.

4. Browse and Select an NFT

Explore different NFT collections like digital art, music, profile pictures (PFPs), virtual land, or game items. 

Each NFT listing shows the image, price (usually in ETH), creator, and item description. Choose one that interests you and fits your budget.

5. Buy or Bid on the NFT

Click “Buy Now” to purchase at a fixed price or “Place Bid” to enter an auction. 

Your wallet will ask for confirmation, and you’ll need to pay a small gas fee (a blockchain transaction fee). Once approved, the purchase is processed.

6. Receive and Store Your NFT

After the transaction is completed, your NFT will be automatically sent to your wallet. You can view it under the “Collectibles” tab in your wallet or on your marketplace profile.

How to Create Non-Fungible Token

Creating a Non-Fungible Token (NFT) for your own work, such as art, music, video, or any digital content, is a great way to secure and sell your creations on the blockchain. 

To create an NFT for your work, you’ll need to:

1. Have a digital file ready
2. Set up a crypto wallet
3. Buy ETH
4. Choose a marketplace (e.g., OpenSea)
5. Upload and mint your work
6. List it for sale
7. Promote it online

Final Note

A Non-Fungible Token (NFT) is a unique digital item stored on a blockchain that proves you own something online, like art, music, videos, or game items. 

Unlike regular money or crypto (which are all the same and interchangeable), each NFT is one-of-a-kind and cannot be replaced with another.

NFTs are often used to:

• Sell and buy digital artwork
• Own collectibles or virtual property
• Use in-game items or exclusive content
• Show proof of ownership for digital assets

They are powered by blockchain (mostly Ethereum) and created using standards like ERC-721. This makes them secure, trackable, and easy to verify.

For creators, NFTs offer a new way to earn and share their work. For buyers, they offer proof of ownership of something special and rare in the digital world.

In short, NFTs are a new way to own, collect, and trade unique digital things, bringing real value to virtual items.

FAQ

1. What makes an NFT different from cryptocurrency?

Cryptocurrencies like Bitcoin or Ethereum are fungible, meaning each unit is the same and can be exchanged one-for-one. NFTs are non-fungible, meaning each token is unique and has its own value. You can trade 1 BTC for 1 BTC, but you can’t trade 1 NFT for another as if they are equal.

2. What can be turned into an NFT?

Almost any digital file can be turned into an NFT, including:

• Artwork
• Music
• Videos
• In-game items
• Virtual land
• Digital collectibles

Even physical items can be linked to NFTs as proof of ownership.

3. Do I own the copyright when I buy an NFT?

No, buying an NFT gives you ownership of the digital token, not the intellectual property rights, unless stated otherwise by the creator. You own the original digital item, but not the right to reproduce or sell copies unless permitted.

4. How do I store and view my NFT?

NFTs are stored in a crypto wallet like MetaMask or Coinbase Wallet. You can view them directly in the wallet or on NFT marketplaces like OpenSea by connecting your wallet to the platform.

5. Are NFTs safe to buy?

NFTs are generally secure, thanks to blockchain technology. However, scams do exist. Always verify:

• The legitimacy of the seller
• The authenticity of the collection
• The website you’re using

Stick with trusted platforms, and never share your wallet’s recovery phrase.