NFT (Non-fungible token) is a non-interchangeable token that is “tied” to a single object, this object can be: a photo, a picture, a gif, a video, a music track, a character in a game, etc. digital content.
In simple words, an NFT is a unique token, it’s like a digital record in a blockchain registry that gives you the rights to own a unique object in the digital space. This document is stored in the user’s cryptocurrency wallet, just like another cryptocurrency.
Any unique object can be turned into NFT. It doesn’t matter if it’s a BMW logo, a work by Van Gogh, or an unknown author. But a drawing by an unknown author can be of little interest to someone, although there are exceptions. This is why objects that have value are usually translated into NFT, otherwise, there is simply no point.
NFT and copyrights
The rights of the NFT owner are spelled out in the smart contract and are generally limited to the ability to buy, own and sell. Thus, by purchasing an NFT, the investor does not become the owner of the exclusive rights to the digitized object of art in this way. Moreover, all relationships of this nature are distributed and regulated only within a specific blockchain network.
Thus, our expert Aleksei Titov explains it in more simple terms. “Usually buyers get limited rights: for example, the owner of an NFT pink dog can use it in a game, the owner of an NFT Mike Shinoda can listen to tracks as long as he wants, the owner of an NFT tweet can post it online, for example, on his social network page. They can also sell their tokens to other people.” Just like the owner of a Ferrari car admires the Ferrari logo every day, but is not the rightful owner of the emblem.
The most common question about the NFT is, of course, “Why to buy it when you can find it all for free on the Internet?” Here it’s simple. As Aleksei Titov says, Reproductions of paintings can also be seen on the Internet, but collectors still buy the originals. And so is NFT: if you buy, for example, a token of a famous meme, it will continue to walk around the Internet, but its actual owner will be you. It’s a matter of prestige and belonging to the art: many people like to own the original.
How to buy or sell an NFT
To be able to buy NFT, first of all, you need a cryptocurrency wallet with the necessary amount on your account. Recently, the list of supported cryptocurrencies has expanded significantly, but Ethereum remains the most popular. The list of wallets also differs from site to site, but almost all work with MetaMask and Trust Wallet.
After registering and funding your wallet, you need to choose and register with a major marketplace. For beginners, it is recommended to choose OpenSea, which is one of the popular services today. When registering it is necessary to specify the wallet used.
This is enough to go to the catalog and select products.
Perspectives on the use of NFTs
NFTs open the way to a decentralized economy – an economy without intermediaries such as a bank or the state. In the future, they could completely change markets such as real estate, because not everyone on the land has legally registered rights to their land and property, and with NFT they have the opportunity to sell it.
NFT also solves a lot of copyright issues, which is not unimportant for art creators. Thanks to blockchain technology, records of the creation and ownership of work remain in the database forever.
Anyway, NFT and other areas in the field of cryptocurrency, such as accepting cryptocurrency payments, is a very promising topics that will surely develop in the future.