An NFT (Non-Fungible Token) is a unique digital asset stored on a blockchain that represents ownership of a specific item, whether digital art, music, video, gaming item, or real-world asset. Unlike cryptocurrencies, each NFT is distinct and cannot be swapped on a 1:1 basis with another NFT.<\/p>\n
The word “fungible” means interchangeable. One Bitcoin<\/a> is identical to another Bitcoin; they are fungible. An NFT is non-fungible: each token has unique properties that make it distinct from every other token.<\/p>\n NFTs are created (minted) on blockchains like Ethereum<\/a>. Each NFT contains: – Digital art and collectibles Buying an NFT means owning a blockchain record proving you hold that unique digital token. However, it does not necessarily mean you own the copyright to the underlying content. The creator retains copyright unless explicitly transferred.<\/p>\n NFT trading<\/a> picked up in India in 2021-22. Indian artists, cricketers, and filmmakers launched NFT collections. The crypto tax<\/a> rules of 2022 (30% tax on gains + 1% TDS<\/a>) significantly reduced NFT trading volume<\/a>s in India.<\/p>\n A digital artist creates a painting and mints it as an NFT on Ethereum. She lists it on OpenSe<\/a>a for 0.5 ETH. A collector buys it, and the transaction is recorded on the blockchain. Smart contract royalties ensure the artist receives 10% of every secondary sale of that NFT.<\/p>\n – NFTs are unique digital tokens on a blockchain representing ownership of a specific item An NFT (Non-Fungible Token) is a unique digital asset stored on a blockchain that represents ownership of a specific item, whether digital art, music, video, gaming item, or real-world asset. Unlike cryptocurrencies, each NFT is distinct and cannot be swapped on a 1:1 basis with another NFT. What Is an NFT? The word “fungible” means […]<\/p>\n","protected":false},"author":3,"featured_media":0,"menu_order":0,"template":"","meta":{"_uag_custom_page_level_css":"","footnotes":""},"class_list":["post-14319","glossary","type-glossary","status-publish","hentry"],"blocksy_meta":[],"uagb_featured_image_src":{"full":false,"thumbnail":false,"medium":false,"medium_large":false,"large":false,"1536x1536":false,"2048x2048":false,"web-stories-poster-portrait":false,"web-stories-publisher-logo":false,"web-stories-thumbnail":false},"uagb_author_info":{"display_name":"Team Lemonn","author_link":"https:\/\/lemonn.co.in\/blog\/author\/ashu\/"},"uagb_comment_info":0,"uagb_excerpt":"An NFT (Non-Fungible Token) is a unique digital asset stored on a blockchain that represents ownership of a specific item, whether digital art, music, video, gaming item, or real-world asset. Unlike cryptocurrencies, each NFT is distinct and cannot be swapped on a 1:1 basis with another NFT. What Is an NFT? The word “fungible” means…","_links":{"self":[{"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/glossary\/14319","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/glossary"}],"about":[{"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/types\/glossary"}],"author":[{"embeddable":true,"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/users\/3"}],"version-history":[{"count":0,"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/glossary\/14319\/revisions"}],"wp:attachment":[{"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/media?parent=14319"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
\n– A unique identifier stored on the blockchain
\n– Metadata pointing to the underlying asset (image, video, audio)
\n– Smart contract<\/a> code defining ownership rules and royalties<\/p>\nWhat Can an NFT Represent?<\/h2>\n
\n– Music albums and concert tickets
\n– In-game items (skins, weapons, characters)
\n– Domain names
\n– Real estate deeds (tokenised property)
\n– Sports highlights and memorabilia<\/p>\nHow NFT Ownership Works<\/h2>\n
NFT Market in India<\/h2>\n
Practical Example<\/h2>\n
Key Takeaways<\/h2>\n
\n– Each NFT is distinct; two NFTs cannot be swapped like-for-like, unlike cryptocurrencies
\n– Ownership of an NFT does not automatically mean ownership of the copyright to the underlying content
\n– Common use cases include digital art, gaming assets<\/a>, music, and collectibles
\n– In India, NFTs are taxed as Virtual Digital Assets at 30% on gains, with 1% TDS on transactions above the threshold<\/p>\n","protected":false},"excerpt":{"rendered":"