Glossary
NFT (Non-Fungible Token)
16/04/2026
An NFT (Non-Fungible Token) is a cryptographic token on a blockchain that represents unique ownership of an asset — digital art, collectibles, in-game items, music, or even real-world objects. Unlike fungible tokens (e.g., BTC or ETH, where each unit is identical), each NFT is distinct and cannot be exchanged on a 1:1 basis.
Fungible vs. non-fungible
| Property | Fungible token (BTC, ETH) | NFT |
|---|---|---|
| Interchangeable | Yes — 1 BTC = 1 BTC | No — each token is unique |
| Divisible | Yes | Typically no |
| Use case | Currency, store of value | Ownership proof, collectibles |
How NFTs work
NFTs are created (minted) on smart contract platforms, most commonly Ethereum using the ERC-721 or ERC-1155 standards. The token contains metadata pointing to the asset and records ownership on the blockchain.
Relevance to miners
- GPU miners were major early participants in NFT markets (Ethereum-based)
- After The Merge, ETH NFT activity no longer benefits PoW miners directly
- Some PoW chains (e.g., Kaspa, Bitcoin via Ordinals) have their own NFT ecosystems
