What are NFTs?#
NFT stands for non-fungible token. NFTs are public, verifiable digital assets — tokens that live on a blockchain and represent ownership of a unique item.
Non-fungible means the asset is unique and irreplaceable, and cannot be exchanged one-for-one for a similar asset. A useful analogy is a birth certificate: everyone has one, but each is different and not interchangeable.
A fungible item is not unique. Money is fungible — a 1 bill, so they can be swapped freely.
A token is a unique digital record created by a smart contract and stored on a blockchain. On Centurion, NFTs follow the CRC-721 standard.
Before NFTs, any digital file could be freely copied. NFTs give each item an individual on-chain fingerprint and a verifiable owner, so the blockchain can show who holds the original and what it has sold for in the past. Copies may exist, but the chain records the true owner.
Common NFT use cases include:
- Digital artwork
- Domain names
- In-game items
- Event tickets
- Records of ownership for unique or limited items
The market determines each NFT's value — the more in-demand it is, the higher the price someone may pay.