What are NFTs?

NFTs (Non-Fungible Tokens) are unique digital assets that represent ownership of specific items. Unlike regular tokens where each unit is identical and interchangeable, each NFT is one-of-a-kind. This chapter explains how NFTs work on Solana and their various uses beyond digital art.

What You'll Learn

By the end of this chapter, you'll understand:

What makes NFTs different from regular tokens
Common uses for NFTs today
How NFTs work technically on Solana
The process of creating NFTs
Storage and management basics

Understanding Non-Fungible

The key difference:

Fungible (Regular Tokens)

Each unit is identical
Interchangeable
Like currency or shares
Example: 1 USDC = any other 1 USDC

Non-Fungible (NFTs)

Each one is unique
Not interchangeable
Like collectibles or property
Example: Each piece of art is different

Common NFT Use Cases

Digital Art and Collectibles

Artists create unique or limited edition digital artwork.

Direct artist-to-collector sales
Royalties on secondary sales
Verifiable authenticity
Global marketplace access

Gaming Assets

In-game items with real ownership.

Trade items between players
Use across compatible games
Retain value outside the game
True digital property rights

Music and Media

Musicians and creators tokenize their work.

Direct fan support
Royalty distribution
Exclusive content access
New monetization models

Event Tickets

Digital tickets that prevent fraud.

Verifiable authenticity
Built-in resale controls
Collectible after events
Direct from organizers

Memberships and Access

Token-gated communities and services.

Transferable memberships
Tiered access levels
Community governance
Exclusive benefits

How NFTs Work on Solana

Technical Structure

Metadata: Information about the NFT (name, image, traits)
Mint Account: Unique identifier on Solana
Token Account: Shows current owner
Associated Files: Usually stored off-chain (IPFS, Arweave)

Why Solana for NFTs?

Low Costs: Mint for ~$0.50 compared to much higher costs elsewhere
Fast Transactions: Instant transfers and purchases
Compressed NFTs: Even cheaper for large collections
Active Ecosystem: Vibrant marketplaces and communities

NFT Costs on Solana

Typical Fees

Minting: ~0.01 SOL ($0.50-1.00)
Buying: Marketplace fee (2-3%) + network fee
Listing: Usually free
Transferring: ~0.000005 SOL ($0.0005)

Compressed NFTs

For large-scale use cases:

1000x cheaper than regular NFTs
Perfect for gaming items
Same ownership benefits
Slightly different technical structure

Storing and Managing NFTs

Wallet Display

Most Solana wallets automatically:

Show your NFT collection
Display images and metadata
Organize by collection
Enable easy transfers

Best Practices

Use trusted wallets
Verify authenticity (check official sources)
Be cautious of DMs (avoid impersonators)
Consider hardware wallets for important collections
Understand ownership rights (owning an NFT ≠ copyright)

Creating NFTs

Basic Process

Create or obtain digital content
Upload to storage (IPFS/Arweave)
Create metadata file
Mint on Solana
List on marketplaces

Platforms for Creators

Technical standards for NFT creation
Creator-friendly minting tools
Art-focused marketplace platforms

Common Questions

Do I own the copyright?

Usually no. NFT ownership typically means you own that specific token, not copyright to the underlying art.

Can NFTs be copied?

The image can be copied, but the verified ownership on Solana cannot be duplicated.

What are NFTs used for?

NFTs enable digital ownership for art, gaming items, event tickets, memberships, and collectibles. They provide creators new ways to connect with their audience.

How are NFTs different from regular files?

While anyone can copy a digital file, NFTs provide verifiable ownership and authenticity on Solana, creating scarcity and provenance for digital items.

What's Next

Now that you understand NFTs as unique digital assets, the next chapter explores the broader Solana ecosystem. You'll learn about different types of applications and how they leverage Solana's speed and low costs.

NFTs demonstrate how digital ownership works on Solana, enabling everything from digital art to gaming assets to event tickets.