NFTs and what a token proves

An NFT (non-fungible token) is a unique ledger entry that can point at a digital file, ticket, or claim. Holding the NFT proves control of that token on the ledger — not automatically ownership of real-world land, copyright, or a building.

Right-clicking an image does not steal the token; holding the token does not automatically grant copyright or a deed.

“Fungible” means interchangeable: one dollar bill is as good as another. A non-fungible token is the opposite. Each NFT has a unique ID on the ledger, plus a small amount of data, often a link to a file stored somewhere else. The ledger records which account holds which ID.

An NFT’s life on a ledger has a few steps. Someone mints it, which creates it. The holder can sell or transfer it, and that change is recorded as a transaction. A holder can also burn it, which destroys it. What the ledger proves is the token’s history and who holds it now. Whether that comes with rights to the art, a seat at an event, or anything in the real world depends on promises made outside the ledger.

Real example: the XRP Ledger supports NFTs natively. When an NFT is minted, its settings are locked in: whether it can be transferred, and whether the issuer may burn it later. An issuer might enable burning for an event ticket that gets used up. Source: Non-Fungible Tokens.