NFT

An NFT (non-fungible token) is a token where each unit is unique and individually tracked — unlike ERC-20 where 1 USDC equals any other 1 USDC, token #3421 in a Bored Ape collection is distinct from #3422. On Ethereum, NFTs use the ERC-721 standard (one ID, one owner) or ERC-1155 (semi-fungible, supports both unique and batch tokens). The actual image or video is almost never stored on-chain — too expensive — so the token is really a pointer to a URL on IPFS or a company's server that hosts the asset. The category peaked in 2021-22 as a speculative wave around digital art, collapsed hard, and has found narrower long-term uses: in-game items, on-chain identity (ENS names), event tickets, and proof-of-ownership for physical goods.