Glossary
Non-Fungible Token (NFT)
A unique on-chain token, typically issued via ERC-721 or ERC-1155, used to represent ownership of a specific item rather than a fungible balance.
Unlike an ERC-20, which represents an interchangeable balance, an NFT represents a specific item: each token has a unique ID, owner, and (usually) a pointer to metadata describing the underlying asset — an image, a piece of music, a game item, a domain name.
ERC-721 is the canonical NFT standard; ERC-1155 packs many fungible and non-fungible balances into one contract. The on-chain part is the ownership record; the asset itself usually lives on IPFS, Arweave, or a regular web server.