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What is an NFT?
An NFT (non-fungible token) is a token on a blockchain that is unique: each one has its own ID and cannot be swapped one-for-one with another. It is often linked to digital art, a collectible or a membership, and the blockchain records who holds it.
What it means for you
Buying an NFT buys the token, not automatically the copyright in the work it points to; creators can keep those rights. The image is often stored off the blockchain behind a link, and each NFT needs its own buyer, so one can be hard to sell at any price.
A common mistake: “Owning the NFT means I own the copyright to the art.”
In fact: In the US, a copyright transfer must be in writing and signed by the owner. The Copyright Office and USPTO note that buyers widely confuse owning the token with owning the copyright; any rights come from the sale terms or license.
How it works
An NFT is a token with an ID no other token in its contract shares, plus metadata describing what it represents; on Ethereum the usual standards are ERC-721 and ERC-1155. The blockchain records publicly which address holds it. The work it points to is a separate thing: the US Copyright Office and USPTO report that most works associated with NFTs are stored off-chain, with the token pointing to their location, and that under US law a transfer of copyright must be in writing and signed by the rights owner.
Sources: ethereum.org: Non-fungible tokens, EIP-721: Non-Fungible Token Standard, US Copyright Office and USPTO: Non-Fungible Tokens and Intellectual Property · checked 4 October 2026
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