But NFTs are designed to give you something that can’t be copied: ownership of the work (though the artist can still retain the copyright. The digital tokens can be thought of as certificates of ownership for virtual or physical assets. How do NFTs work? People are excited about them because they have certain properties of the real-world objects that we’re used to. NFT art could be a new way to spend and make money. Getty Images. NFTs, or nonfungible tokens, can be tied to a video highlight, a meme or a tweet
What are NFTs?
Non-fungible tokens are, to put it simply, unique digital tokens that are created using Ethereum – you can’t duplicate them – you can’t reverse engineer them – they can be used to track ownership of physical or digital goods – they can also be used to validate the authenticity of a product, like the authenticity of a baseball card The business of smart contracts There are two steps to the process. First, a software ‘smart contract’ (a set of instructions executed automatically according to predetermined conditions) is created and linked to an account on the blockchain, which is like an internet database containing data. Next, a set of ‘smart assets’ are created by a digital token provider, and attached to the software contract.
The Benefits of NFTs
A NFT is unique. It will be impossible to produce or alter another copy The token will become the ‘proof of possession’ of the content and will show as proof of the author’s claim on the content NFTs can help pay for the creation of valuable content, and allow artists to retain ownership of their work NFTs can have potential uses in legal disputes over ownership of a work All of this sounds great for artists, right? But what are the cons? NFTs, or nonfungible tokens, are valuable. They can be used for buying art, or trading it. And the value of the token has the potential to grow. If people know that it’s valuable, they’ll be willing to spend real money for them. But with how the system is set up, only a small percentage of art will ever be in circulation.