The paper presents a novel framework for implementing decentralized algorithms based on non-fungible tokens (NFTs) for digital twin management in aviation, with a focus on component lifecycle tracking. The proposed approach uses NFTs to create unique, immutable digital representations of physical aviation components capturing real-time records of a component’s entire lifecycle, from manufacture to retirement. This paper outlines detailed workflows for key processes, including part tracking, maintenance records, certification and compliance, supply chain management, flight logs, ownership and leasing, technical documentation, and quality assurance. This paper introduces a class of algorithms designed to manage the complex relationships between physical components, their digital twins, and associated NFTs. A unified model is presented to demonstrate how NFTs are created and updated across various stages of a component’s lifecycle, ensuring data integrity, regulatory compliance, and operational efficiency. This paper also discusses the architecture of the proposed system, exploring the relationships between data sources, digital twins, blockchain, NFTs, and other critical components. It further examines the main challenges of the NFT-based approach and outlines future research directions.