NFT – is something new, but titles of articles with this word appear in news more and more often. Today post is about NFT.
NFT vs cryptocurrency, what is difference
NFT (not-fungible token) means fixed token. It is usually created using the same type of programming as cryptocurrency, such as Bitcoin or Ethereum, but that's where the similarity ends.
Physical money and cryptocurrencies are "exchangeable", it can be traded or exchanged. They are also the same value - one dollar is always equal to another dollar; one bitcoin is always equal to another bitcoin. NFTs are different. Each of them has a digital signature, which makes it impossible to exchange NFT or equal to each other (therefore, unchanged).
NFT mechanic
From a technological point, NFT is a digital certificate that is attached to any "digital product", such as images, video, audio, etc. This certificate (token) contains all the information about the product, and all history of changes of it.
The token mean the exclusive right to the product, so owning it, buying, selling or exchanging it, all these transactions are carried out with the same product. We can always find out who created the product or who now owns it, because the tokens are stored in an open blockchain and because of this information about the product, the history of its operations will be always available and actual.
So this is to mean that, this is an ideal opportunity to claim your rights to any unique object.
NFTs are usually contained in the Ethereum blockchain, but other blockchains also support them.
Usually, NFT is created or "minted" from digital objects, for example:
• GIF files
• Video and sports moments
• Collecting
• Virtual avatars and video game skins
• Designer sneakers
• Music
Even tweets are taken into account. Twitter co-founder Jack Dorsey sold his first tweet as NFT for more than £2 million.
In essence, NFTs are like physical collectibles, only digital. "Buyers" of such goods also receive exclusive property rights. NFTs can have only one owner at a time. Unique NFT data makes it easy to verify ownership and transfer tokens between owners. The owner or creator may also store certain information in them. For example, artists can sign their artwork by including their signature in the NFT metadata.
What are NFT used for?
Blockchain and NFT technology give artists and creators a unique opportunity to monetize their work.
For example, artists no longer need to use galleries or auction houses to sell their art. Instead, the performer can sell it directly to the consumer as NFT, which also allows them to save most of the profits. In addition, artists can program royalty to earn a percentage of sales when their art is sold to a new owner. This is an attractive feature because artists usually do not receive future income after their art is first sold.
In conclusion, it should be noted that the use of the NFT tool is important for copyright not because of changing the paradigm and fundamentals of intellectual property, but because of creating new opportunities for authors and rights holders to safely and profitably distribute their works.