What is an NFT?
NFT stands for Non-Fungible Tokens that are put in use to represent the ownership of distinctive items like art, collectibles, even real estate. Only one person can claim ownership of NFT at a time and is safeguarded by the Ethereum blockchain. The things that are tokenized cannot be interchanged nor used for any other items because of their distinctive properties. No two NFTs can be the same which makes an NFT digitally unique.
How do NFTs Work?
Unlike ERC-20 tokens, NFTs are different in terms of uniqueness. NFTs have the potential to gain ownership of any distinctive digital data piece. An NFT is crafted from digital pieces representing digital as well as non-digital assets. Taking some examples into consideration.
- Deeds to a Car
- Tickets to an event
- Tokenized & Legal documents
To put in simple words, NFTs are digital items, for example, rather than owning an actual handmade painting to put on your wall, you can have a digital file instead.
How much are NFTs Worth?
According to a recent study, the evolution of NFTs is in sync with the digital world of the future. Speaking of which, you can tokenize any of your work to sell it as an NFT. However, there have been some of the million-dollar sales done lately such as –
CryptoPunk is the second most popular and expensive NFT that is being sold in millions.
Digital art was sold for $6m by the musician Grimes.
Jack Dorsey, founder of Twitter promoted an NFT for his first tweet that scaled up to $2.5m
What is Restricting People from Copying Digital Art?
Nothing, literally nothing is restricting people from copying digital art. For instance, Beeple’s art that was sold for about $69m was seen by millions of people making it easier to copy the art and share it countless times.
There have been many cases where the artist has retained the ownership of the art so that he can keep on manufacturing and selling it further. However, the buyer of an NFT still owns the token to claim themselves the owner of the original art.
To Wrap Up
NFTs have made their place valuable for digital creators given their guaranteed ownership, authenticity, and purely digital nature. Further, digital creators have the freedom to put out their own work and get revenue every time they are selling, giving them more control over their digital work and making NFTs worth millions.