What is an NFT? A one-off deck explanation

Walk into any shop and most of the decks on the wall are the same as the one next to them. Same shape, same graphic, same price. Now picture one deck the artist hand-painted for the shop, signed on the bottom. There's only one. That's the easiest way to understand an NFT.

Fungible vs non-fungible

Fungible means swappable. A dollar is fungible: any dollar is as good as any other. So is one deck from a stack of identical stock decks.

Non-fungible means unique. An NFT (non-fungible token) is a token where each one has its own ID and its own owner, recorded on a blockchain. Like the signed one-off, you can't swap it for "another one", because there isn't another one.

What you actually own

This trips a lot of people up. Owning an NFT usually means owning the token: the on-chain record with its ID that says your address holds it. That record usually points to the art or media, which is often stored somewhere else.

It doesn't automatically mean you own the copyright to the art. What you can do with the art depends on the creator's terms. It's like buying a signed print: you own the print, not the right to sell copies of it.

Where the art lives

The token on-chain usually holds a link to its details, often called metadata: name, image, traits. How permanent that is depends on where the creator stored it. Some storage is built to last; some is a regular web server that could go offline. It's worth knowing which before you value something.

A worked example: the shop's one-off

Say a shop releases a one-off digital version of its anniversary deck graphic as an NFT.

1. The token gets an ID, and the shop's address owns it at first.
2. The shop sends it to a collector. Now the chain shows the collector's address as the owner.
3. Anyone can open an explorer and see that ownership, and the full history of who held it.
4. The collector can show it off or send it on. They don't automatically get the right to print the graphic on shirts, unless the shop's terms say so.

What NFTs get used for

Art, collectibles, tickets, memberships and proof that you hold something. The common thread is a record of a unique item that anyone can check.

The scams to know

• Fake collections with real projects' names and art, pushed in DMs and replies.
• "Free mint" links that ask your wallet to approve something that isn't a mint at all.
• Surprise NFTs in your wallet with a link telling you to "claim" something. Don't open the link.

Check the project's own website for anything official, and read every approval before you sign.

For Global SKATE

You don't need an NFT, a wallet or anything crypto to play. The game is free, and the app never creates a wallet. A collector's NFT doesn't make anyone's kickflip count more.

Minting, sending and selling

Three words you'll see around any NFT:

• Mint: creating the token for the first time. Until it's minted, it doesn't exist on the chain.
• Send: moving it from one address to another. The chain updates the owner. Like any transaction, it can't be undone, so check the address.
• Sell: sending it in exchange for something, usually through a marketplace program that swaps the two at once.

Each of those is a transaction, and each needs your approval. A "mint" button that asks you to approve sending everything in your wallet isn't a mint.

Why "unique" doesn't mean "valuable"

Being one of one makes an NFT unique, not worth anything. A hand-painted deck from your friend is unique too. What people will pay for something depends on them, not on the token, and that can go to nothing. If someone tells you an NFT is guaranteed to be worth more later, walk away from that conversation.

Common mistakes

• Thinking you own the copyright. You own the token. The art's rights depend on the terms.
• Ignoring where the metadata lives. If it's on a server that goes down, the image can break.
• Trusting a collection's name. Anyone can copy a name. Check the official site.
• Clicking links attached to surprise NFTs. That's a common trap.

FAQ

Can two NFTs be identical?

Two can show the same image, but each token has its own ID, so they're still different tokens.

Is an NFT the same as a token?

An NFT is a kind of token: one where each is unique instead of swappable.

Can I see who owns an NFT?

Yes. Ownership is public on the chain and visible on an explorer.

Do I need an NFT to use Skate Labs?

No.

Next: What is DeFi? The skater's short version

Join the testers at skatelabs.app/testers and play a Game of SKATE with your friends. Global SKATE is free and in testing on iPhone and Android.