How is Blockchain Technology Different From NFT?

Want to learn more about crypto?
Explore more on our blog!
Learn more
An NFT showcasing a futuristic cityscape.
Table of Contents
An NFT showcasing a futuristic cityscape.


You may have heard about blockchain and NFTs, but understanding their differences might be a bit confusing. Both of these technologies are revolutionizing the digital world yet in very distinct ways.

In this article, we will demystify blockchain technology and Non-Fungible Tokens (NFTs), highlighting how they function differently while shedding light on what makes each unique. Ready to dive into the fascinating world of digital assets?.

Key Takeaways

  • Blockchain technology is a decentralized digital ledger that records transactions securely, while NFTs are unique digital assets created and traded on the blockchain.
  • Blockchain serves as a technology infrastructure for various applications beyond NFTs, enabling secure asset transfer without relying on intermediaries.
  • NFTs are special digital assets that cannot be copied or replicated, giving buyers ownership of one-of-a-kind items like artwork or collectibles in the digital world.
  • Blockchain has diverse use cases such as cryptocurrency transactions, supply chain management, healthcare records, while NFTs have gained popularity in art, virtual real estate, fashion, and tokenizing physical assets.

Understanding Blockchain Technology

Blockchain technology is a decentralized digital ledger that securely records transactions across multiple computers in a network.

Definition and function of blockchain

Blockchain is a kind of digital ledger. It keeps records of all trades made in an open way. It uses pieces called blocks to store this data. These blocks link up with each other like a chain, so we name it blockchain.

This technology gives us ways to move items like money or files across the web in a safe way. For example, when you send someone Bitcoin, the trade gets added to the block. Then others can see it happened but not change it at all.

How blockchain works

Blockchain is a technology that works by creating a digital ledger of transactions. Here’s how it works:

  1. Transactions are grouped together in blocks.
  2. These blocks are then added to the existing chain of blocks, forming the blockchain.
  3. Each block contains a unique identifier called a hash, which is generated based on the data in the block.
  4. When a new block is added to the blockchain, it is linked to the previous block using its hash.
  5. This linking creates an unbroken chain of blocks, making it difficult to alter or tamper with past transactions.
  6. The process of adding new blocks to the chain is carried out by network participants called miners.
  7. Miners use powerful computers to solve complex mathematical problems that validate and secure the transactions.
  8. Once a miner solves a problem, they add the verified block to the blockchain and receive rewards in return.
  9. The blockchain is continuously updated and maintained by multiple nodes in a decentralized network.

Explaining Non-Fungible Tokens (NFTs)

NFTs are unique digital assets that can represent ownership of a specific item, artwork, or collectible in the digital world. They are created and traded using blockchain technology, allowing for secure ownership transfer and verification of authenticity.

Definition and purpose of NFTs

NFTs, or Non-Fungible Tokens, are unique digital assets that cannot be copied. They are stored on the blockchain, which is a secure and transparent digital ledger. NFTs have gained popularity in the art and collectibles space because they allow artists to monetize their work and buyers to own one-of-a-kind digital assets.

These tokens can be bought, sold, or traded on various online marketplaces using cryptocurrencies. The value of an NFT depends on factors like scarcity and demand. NFTs have also been used for virtual real estate, virtual fashion, and even tokenizing physical assets.

In simple terms, NFTs are a way to securely prove ownership of something unique in the digital world.

Discover more about NFT Basics by checking out the detailed exploration in NFT Benefits.

How NFTs are created and traded

NFTs are created and traded using blockchain technology. Here’s how it works:

  1. Artists or creators mint NFTs by uploading their digital content, such as artwork, music, videos, or virtual items, onto a blockchain platform.
  2. The content is then tokenized, meaning it is turned into a unique digital asset represented by an NFT.
  3. Each NFT has its own digital signature and metadata that verifies its authenticity and ownership.
  4. Once created, NFTs can be sold or auctioned on various NFT marketplaces.
  5. Buyers can purchase NFTs using cryptocurrencies like Ethereum or other accepted forms of payment.
  6. The ownership of the NFT is recorded on the blockchain, ensuring transparency and immutability.
  7. After purchasing an NFT, the buyer can transfer or sell it to another party if they wish.

Differences between Blockchain Technology and NFTs

Blockchain as a technology infrastructure

Blockchain technology serves as the foundation for various applications, including Non-Fungible Tokens (NFTs). It is a secure and decentralized digital ledger that records transactions across multiple computers.

This distributed software network ensures transparency and security by creating immutable records. Blockchain allows for the secure transfer of assets without relying on intermediaries like banks or governments.

It utilizes cryptographic assets, like cryptocurrencies, to facilitate the exchange of value in a peer-to-peer network. Blockchain’s smart contracts enable ownership transferral and automate processes while reducing costs and eliminating fraud risks.

NFTs as unique digital assets

NFTs, or Non-Fungible Tokens, are special digital assets that cannot be copied or replicated. Unlike cryptocurrencies like Bitcoin and Ethereum which can be exchanged equally, NFTs have their own unique value.

They are stored on the blockchain, a secure and transparent digital ledger. Artists use NFTs to sell their work online, giving buyers ownership of these one-of-a-kind digital assets.

The value of an NFT is determined by factors like scarcity and demand. NFTs have also been used for virtual real estate, fashion, and tokenizing physical assets. They provide a new way to buy, sell, and trade unique digital items securely through blockchain technology.

Use cases and applications of blockchain vs NFTs

Blockchain technology and NFTs, although interconnected, serve different purposes and have different applications. Here we will explore some of their use cases:

Blockchain Technology Use CasesNFT Use Cases
Blockchain technology has been widely used for cryptocurrency transactions. Currencies like Bitcoin and Ethereum operate on the blockchain.NFTs have garnered immense popularity in the art and collectibles space. Artists can monetize their work and buyers can own unique digital assets.
Blockchain provides a platform for decentralized record-keeping of digital transactions. This promotes transparency and enhances security.NFTs can also be utilized for virtual real estate. Individuals can buy, sell, and trade digital properties.
This technology is useful in supply chain management. It can track and trace products, ensuring product authenticity and preventing fraud.Virtual fashion is an emerging use case for NFTs. Fashion enthusiasts can own and trade unique virtual clothing items.
Blockchain has found applications in healthcare. It can securely manage patient records and ensure data privacy.NFTs also have the potential to tokenize physical assets. This means real-world assets can be digitized and owned virtually.

While blockchain technology provides the infrastructure for secure and transparent digital transactions, NFTs represent a unique application of this technology, offering various opportunities for digital asset ownership and trade.


Blockchain technology is a decentralized digital ledger that ensures secure transfer of assets like cryptocurrencies. On the other hand, NFTs are unique digital assets created and traded on the blockchain.

While blockchain is a technology infrastructure, NFTs serve as specific applications within that system. Understanding these differences will help you navigate the evolving landscape of digital ownership and transactions.


What is blockchain technology?

Blockchain technology is a type of digital money that uses a distributed ledger and peer-to-peer network to keep track of exchanges.

How are Non-fungible tokens (NFTs) different from blockchain?

Non-fungible tokens (NFTs) differ from other types of digital money since they cannot be exchanged equally like most cryptocurrencies. Each NFT is unique!

Do both use the same amount of electricity?

No, energy-hungry cryptocurrencies like some blockchain protocols can use more electricity than NFTs.

Can I record my NFT on a stock ledger?

Yes, you can record your non-fungible tokens on a distributed ledger, just like other means of exchange in the blockchain world!


The information provided on this blog is for general informational and educational purposes only. It is not intended as financial, legal, or investment advice. Cryptocurrency investments are volatile and high risk in nature; it is possible to lose your entire investment. We are not financial advisors, nor do we purport to be.

While we strive to provide accurate and up-to-date information, we cannot guarantee the accuracy, completeness, or applicability of any information provided. The views and opinions expressed on this blog are solely those of the authors and should not be construed as professional advice. We do not endorse or guarantee the performance of any cryptocurrencies, projects, or companies mentioned herein.

Readers are encouraged to conduct their own research and consult with a professional financial and legal advisor before making any investment decisions. The owner of this website and the authors of its content will not be liable for any losses, injuries, or damages from the display or use of this information. Use of this information is at your own risk.

About the Author:
Morgan Davis, an expert in digital currency and economic analysis, offers a unique perspective on cryptocurrency within the global financial landscape. With a background in International Economics, Morgan's insights delve into how macroeconomic factors influence the crypto market. Their writing simplifies complex economic and cryptocurrency concepts, making them accessible to a broad audience. Morgan is actively engaged in discussions about the impact of blockchain on finance, and their work empowers readers to understand and navigate the world of digital currencies.