What is an NFT? An Intro
Lars Heerink • 25 Jul 2025
Nft's came in the spotlight when a lot of celebrities started using Bored apes as their profile picture. For a long time, nft's sole purpose was to prove ownership and use a limited edition profile picture to get access to exclusive crypto/nft communities. But the technology can be more and is in our eyes a cornerstone of the crypto economy of the future.
If you’ve spent time reading about digital art, blockchain gaming, or the world of Web3, you’ve likely come across the term “NFT”. It’s everywhere nowadays, but what exactly is an NFT, and why is it such a big deal?
You don’t need to be a developer or crypto expert to get it. In this article, we’ll break down what NFTs are, how they work, and why they’re a key piece of the digital ownership revolution that we at Blockcentral are excited about. Just like blockchain and crypto wallets, NFTs are changing how we think about value, access, and identity online.
What is an NFT?
NFT stands for Non-Fungible Token. In simple terms: it’s a unique digital certificate of ownership stored on a blockchain.
Unlike cryptocurrencies like Bitcoin or Ethereum (which are interchangeable or “fungible”), each NFT is one-of-a-kind. It could represent a piece of digital art, a music file, a virtual piece of land, or an in-game item.
Think of it like this:
- A dollar bill is fungible as you can trade it for another dollar, and they’re equal.
- A signed first edition of a book is non-fungible as it’s unique, and not easily replaceable.
- An NFT proves you own something unique even if it only exists in digital form.
How does it work?
Every NFT is linked to a specific piece of data on the blockchain. That blockchain acts as a public, tamper-proof ledger of ownership.
When you buy an NFT, your wallet address becomes the registered owner. That ownership is visible and verifiable by anyone and it can’t be forged, lost, or changed by anyone else.
Most NFTs include:
- A reference to the digital item (like an image, video, or file)
- Metadata (details like title, creator, description)
- Transaction history (who bought it, for how much, and when
Why is this important?
NFTs aren’t just collectibles, they’re part of a larger movement toward digital ownership and creator empowerment.
Here’s why we from Blockcentral believe it’s a big thing:
1. True ownership of digital assets can be proved
Until now, owning something online didn’t really mean anything. Anyone could copy a file, screenshot an image, or download a song. With NFTs, you can prove ownership of digital goods in a way that’s verifiable, transferable, and secure.
That opens up new possibilities:
- Owning digital art or photography
- Owning in-game items that you can sell or trade
- Owning virtual real estate in online worlds
2. Creators can be empowered with new income models
NFTs give creators direct access to their audience, no middlemen, no gatekeepers.
Even better: NFTs can include royalties, so the creator earns a percentage every time their work is resold. That means artists, musicians, writers, and game developers can earn long-term value from their work, not just a one-time sale.
3. More than art: access, identity, and utility
NFTs aren’t just about art. They’re already being used as:
- Tickets to live events, online courses, or gated communities
- Membership passes for DAOs (decentralized communities)
- Digital IDs that let you log into Web3 platforms
At Blockcentral, we believe NFTs will play a key role in how we access apps, build communities, and manage our identities online.
Why now?
NFTs have only been around since 2017, but the space has exploded in recent years. Millions of people now own NFTs, and major brands, artists, and companies are experimenting with them in exciting ways.
Today, we’re seeing:
- Gamers truly owning and selling in-game items
- Artists releasing albums and artwork directly to fans
- Communities forming around NFT collections and shared ownership
The tools are getting easier to use. The use cases are expanding. And we’re just scratching the surface.
Do I need to be an NFT expert?
Not at all. You don’t need to understand file systems to use the internet and you don’t need to understand smart contracts to collect or use NFTs.
But learning the basics gives you an edge. It shows you how the internet is changing, and how ownership, access, and identity are being reimagined in the digital world.
NFTs are more than a trend, they’re a key building block in the Web3 ecosystem. And at Blockcentral, we’re investing in the platforms, protocols, and creators that are leading the way.
See our other blogs:
https://www.blockcentralvc.com/blog/blockchain-technology-an-intro
https://www.blockcentralvc.com/blog/crypto-wallets-an-intro