NFTs — Coffee Break Quotes

In one minute

What: An NFT is a token that is unique (non-fungible). It points to metadata that describes the item (image, name, traits, etc.).
Ownership: The blockchain shows which wallet currently owns the token — that’s the “deed.”
Important: The image/file is often stored off-chain and linked by a URL or content hash. The token ≠ the file itself.

Educational only — not financial or legal advice. Verify contracts, read licenses/rights, and start with tiny test transactions.

How NFTs work (plain English)

Standards

ERC-721: One unique token per ID (classic NFTs).
ERC-1155: Multi-token standard (mix of unique and batchable items — great for games/tickets).
Other chains have equivalents (e.g., SPL on Solana).

Metadata & media

Token → metadata JSON (name, description, attributes, image link).
Media can be on centralized URLs or content-addressed storage where the link is the file’s hash (more tamper-resistant).
See On-chain vs Off-chain for storage trade-offs.

Minting

Creating the token. A mint transaction writes the NFT to the chain and assigns it to a wallet.

Transfers

Sending the NFT to another wallet updates ownership on-chain. You pay gas in the chain’s native coin.

What you “own” (and what you don’t)

On-chain ownership: You control the token in your wallet. Anyone can verify that.
IP/licensing is separate: Buying an NFT doesn’t automatically grant copyright or commercial rights. Projects may include a license (e.g., personal use, commercial allowed, or public domain/CC0).
Royalties: “Creator royalties” are often enforced by marketplaces, not the base protocol. They can vary by platform and may not be guaranteed.

Always read the project’s license/terms. This page is not legal advice.

Common NFT uses

Art & collectibles

Editioned or 1/1 pieces with on-chain provenance.

Tickets & membership

Event passes, subscriptions, or token-gated communities.

Gaming & items

Skins, weapons, characters, or land with verifiable ownership and trading.

Certificates

Proofs of attendance, diplomas, credentials — easy verification, no paper shuffle.

Media unlocks

Tokens that unlock files, streams, or bonus content via token-gating.

Buying your first NFT (step-by-step)

Pick the chain (e.g., Ethereum or a Layer 2). Add a little native coin for gas.
Verify the collection from official links (website/Docs/socials). Beware of copycat contracts.
Connect wallet on the correct network; review marketplace permissions.
Check metadata (traits, edition size, token ID) and storage (URL vs content-addressed).
Buy or bid. After confirmation, the NFT shows in your wallet/marketplace profile.

If the NFT doesn’t appear, add the contract address manually or use the marketplace viewer.

Minting an NFT (creator basics)

Prepare artwork/media and a metadata JSON (name, description, traits, image link).
Upload media to reliable storage (consider content-addressed approaches).
Deploy or use a reputable minting contract (ERC-721/1155). Test on a testnet or with one token first.
Set royalties (if supported) and publish official links (site, explorer, contract address).
Document your license (personal use, commercial allowed, or CC0/other) in metadata and your site.

Good documentation and clear rights reduce confusion later.

Storage choices (why it matters)

Centralized URL: Easy to host, but the owner can change/remove the file (image can “switch”).
Content-addressed: Link includes the hash (CID). If the file changes, the link changes — better integrity.
On-chain media: Small art or text can be stored fully on-chain (most durable, but higher mint cost).

Learn more: On-chain vs Off-chain.

Ordinals vs NFTs (quick note)

Ordinals: “Inscriptions” on individual satoshis in Bitcoin; often the media is directly stored in the chain’s witness data.
NFTs (general): Smart-contract tokens on chains that support them (e.g., Ethereum, Layer 2s, Solana), typically referencing external metadata.

See: Ordinals.

Risks & how to manage them

Phishing & fake sites: Bookmark official URLs; avoid DMs. Check the exact contract address.
Rug pulls/edits: Centralized metadata can be changed; prefer content-addressed storage and reputable teams.
Unlimited approvals: Don’t grant infinite token approvals to random contracts.
Illiquidity & volatility: Prices can swing; some items may be hard to resell.

Royalties not guaranteed: Depends on marketplace policy and contract design.
Legal/IP: Ownership of the token isn’t the same as copyright. Read the project’s license/terms.
Fake airdrops: Don’t interact with surprise NFTs from unknown senders.
Wrong network: Make sure wallet network matches the NFT’s chain.

Simple checklists

Before buying

Official contract address verified?
Storage type understood (URL vs content-addressed vs on-chain)?
Edition size and traits make sense?
Marketplace and royalty policy reviewed?
Gas on the correct network available?

Before minting (as a creator)

Clear license/rights text prepared?
Media stored reliably (prefer content-addressed) and backups kept?
Contracts audited/battle-tested or deployed by reputable services?
Royalties configured (if desired) and disclosed?
Official links and contract published for buyers to verify?

Educational content only. Do your own research.

Quick glossary

Metadata: JSON describing the NFT (name, image, attributes).
Content-addressed storage: Files retrieved by their hash (CID). Change the file → new CID.
Mint: Create a token on-chain; “burn” destroys it or removes it from circulation.
Edition size: Number of items in a collection (e.g., 10,000).
Trait: Attribute like color/rarity used in collectibles.
Royalty: Optional creator fee on secondary sales (enforced by marketplaces or contract logic when supported).

More crypto topics

Types of crypto Coins vs tokens, utility, governance, and stablecoins. Layer 1 blockchains Base networks that handle transactions and security (e.g., Bitcoin, Ethereum, Solana). Layer 2s Scaling networks that batch/compress transactions and settle to an L1. Smart contracts Programs on a blockchain that run exactly as coded once triggered. dApps Apps that use smart contracts instead of centralized servers. DeFi Lending, DEXs, and yield in smart-contract form. Decentralization Spreading power so no single party controls the system. Wallets & keys Public addresses, private keys, and seed phrases explained. Gas & fees Why transactions cost money and why fees change. Consensus basics How nodes agree on the ledger without a central authority. Mining vs staking How PoW and PoS secure networks and issue new coins. On-chain vs off-chain What happens directly on the blockchain vs elsewhere. Privacy coins Coins that hide sender, receiver, and/or amounts (e.g., Monero, Zcash). Oracles Services that bring real-world data on-chain for smart contracts. Exchange tokens Tokens issued by trading platforms for fees, rewards, or governance. Stablecoins Tokens designed to track a stable value like the US dollar. NFTs Unique digital items on-chain. Ordinals Bitcoin inscriptions that attach data (like images) to individual satoshis. Tokenization of assets Turning real-world assets (like art or Treasuries) into on-chain tokens. Bitcoin: store of value? Why some view BTC like “digital gold.”