---
# System prepended metadata

title: 'Chapter 2, Section 1: WTF Is An NFT?'
tags: [Chapter 2]

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# Chapter 2, Section 1: WTF Is An NFT?

###### tags: `Chapter 2`

NFT stands for [[Non Fungible Token]]. Was that any clearer? Haha.

NFTs are essentially digital tokens on the blockchain, but they are one-of-a-kind. 

Even if two NFTs look exactly the same, cryptohraphically, they are different.

**The Details**

NFTs consist of an image (usually) and its [[metadata]].

Metadata is the distinguishing factor of NFTs. In most cases, the metadata of an NFT points to a link, [[off-chain]], where the image actually resides.

For simpler understanding, the "art" of an NFT may not be unique. But the NFT's metadata is.

NFTs are not limited to JPEGs; GIFs, soundtracks, and other file forms can also be NFTs.

## Terms To Nutshell

1. Non Fungible Token

Fungible tokens are identical assets, with one token interchangable with another.

Intuitively, Non Fungible Tokens are NOT the same thing. Every NFT is unique.

2. Metadata

Metadata details an NFT's information. 

This includes its name, owner, features, and more.

The metadata of an NFT is on the blockchain, stored in a "hash" along with the image.

3. Off-chain

Off-chain simply refers to places outside the blockchain.

Many NFT creators opt to store their NFTs in IFPS/cloud servers, thereby making these NFTs off-chain.

This is usually due to NFTs taking up tons of space, making them expensive to upload on the blockchain.