Everything You Need to Know About NFTs

NFTs are among the hottest crypto trends, combining unique art with cutting-edge technology and more. The key element of NFTs is the technical ability to separate the original artist’s creation from mere copies. The same technology makes it possible to verify the owner of the original artwork, which turned out to be extremely valuable in the online space in which digital copies can be made very easily.

What Is an NFT and What Is It Good for?

An NFT is a non-fungible token. While 1 BTC or ETH is equal to any other unit of the same cryptocurrency or can be split into smaller units, each NFT is completely unique – it represents only itself and cannot be automatically exchanged. At the same time, an NFT can have a price determined by the market, but we will come back to that later.

An NFT exemple

An NFT is a digital certificate confirming the ownership of a particular digital asset. The token itself does not contain an artwork but only a link to it and a smart contract that defines the owner’s rights and ability to manage the asset. Information about all owners can be found on the block chain network. NFTs were originally conceived as a technical means for authors to control their own works in the digital sphere, where piracy or intellectual property theft is a problem, but in practice, things turned out differently.

Why Don’t NFTs Protect Authors?

An NFT does not protect authors as the ownership information is kept in a single block chain network. There are dozens of these networks, with no connection between them and outside websites and apps, so “pirating” someone else’s work by digitizing it in NFT form can’t be stopped automatically.

The main reason for this is the fact that block chain networks are decentralized by design. It is possible to create NFTs on dozens of related services, even using random images from the web. It is up to the author to monitor the appearance of his works on third-party services independently since there is no centralized control in this area and no real technical possibility to do so.



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