Lesson 9 — NFT Concepts

NFTs, or non-fungible tokens, represent unique digital records on a blockchain. Unlike fungible tokens such as USDT or ETH, each NFT can have distinct identity, metadata, ownership history, and attributes.

This lesson introduces NFTs from an infrastructure perspective rather than a hype perspective. Students learn that an NFT can represent digital art, collectibles, memberships, game assets, access rights, documents, or tokenized objects. The blockchain records ownership of the token, but the legal rights connected to that token can vary.

Metadata is an important concept. Some NFT information may be stored on-chain, while other information may be stored off-chain. If metadata storage is weak, the NFT’s visible content can be affected. Students should understand that NFT ownership and legal ownership are not always the same thing.

NFTs also carry market risks. Many NFT markets are illiquid. Prices can be speculative. Scams, fake collections, wash trading, copyright disputes, and weak demand can create losses.

The goal is to understand NFTs realistically. They are a useful blockchain primitive, but they are not automatically valuable.

1. Explain the difference between fungible and non-fungible tokens.
2. Research one NFT use case outside digital art.
3. Write three risks of NFT ownership.
4. Explain why metadata storage matters.