# How do NFTs work?

An NFT is created when a unique digital asset is "minted." This minting process assigns a unique identifier to the asset, which is then recorded on the blockchain as an NFT. This identifier acts as a certificate of authenticity, proving that the NFT is the original and one-of-a-kind.

When an NFT is bought or sold, the transaction is recorded on the blockchain, and the ownership of the NFT is transferred to the new owner. This ensures that the ownership and provenance of the NFT can be traced back to its original creator. The transparency and immutability of the blockchain makes it possible for anyone to verify the ownership and provenance of an NFT at any time.

Smart contracts are also a key component of NFTs. They are self-executing contracts with the terms of the agreement between buyer and seller being directly written into lines of code. They determine the conditions under which an NFT can be bought or sold, and can even specify the terms for future transactions, such as the distribution of royalties to the original creator.<br>


---

# Agent Instructions: Querying This Documentation

If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question.

Perform an HTTP GET request on the current page URL with the `ask` query parameter:

```
GET https://docs.mintpad.co/nft-fundamentals/how-do-nfts-work.md?ask=<question>
```

The question should be specific, self-contained, and written in natural language.
The response will contain a direct answer to the question and relevant excerpts and sources from the documentation.

Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.