> For the complete documentation index, see [llms.txt](https://spaceboynfts.gitbook.io/spaceboysnft-technical-paper/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://spaceboynfts.gitbook.io/spaceboysnft-technical-paper/introduction/what-is-a-spaceboysnft/what-is-an-nft/how-do-nfts-work.md).

# How do NFTs work?

NFTs are an alternate to an ERC-20 token. The difference being that NFTs individual tokens are unique and not divisible. 

Ownership is managed through the UNIQUEID and Metadata that no other token can replicate. 

Smart-Contracts are stored inside NFTs and can be executed to assign ownership and manage the transferability of the NFTs. These examples are some of the many functions available with Smart-Contracts.

Here's why it works:

* Transaction history and token metadata is publicly verifiable - it's simple to prove ownership history.
* It's nearly impossible to manipulate data to 'steal' ownership
* Trading NFTs can happen peer-to-peer without involving platforms that incur fees.
* Decentralized and secure

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