NFTs and Web3
Last reviewed November 1, 2026
In 2021 some NFTs sold for millions; by 2023 the market had crashed. The hype went, the technology stayed, and it now gets used for far more ordinary things.
An NFT (non-fungible token) is a unique token. One bitcoin is the same as any other, but each NFT has its own ID, which lets it record who owns a specific digital item.
Web3 is the umbrella term for apps where users keep their data and assets in their own wallet instead of handing them to a platform.
What an NFT really stores
Most NFTs hold only a link to a file stored on a server or on IPFS. Buying the NFT does not automatically give you copyright in the image. The rights are whatever the issuer grants, which is often less than buyers assume.
What NFTs are used for
Beyond art and collectibles, NFTs serve as tickets, membership passes, in-game items and blockchain domain names such as ENS .eth addresses. Some brands issue them as certificates of authenticity for physical goods.
DAOs
A DAO (decentralised autonomous organisation) writes its rules into smart contracts, and members vote with tokens on things like how to spend a shared treasury. In practice a handful of large holders often control most of the votes.
Web3: the pitch and the reality
The pitch is an internet where people own what they create. Today most users still reach these apps through a few wallet providers and infrastructure companies. When you look at a Web3 project, ask how decentralised it really is.