What is NFT & how does it work?

In many NFT sales, what the buyer gets is simply the unique entry in the blockchain database that identifies them as the owner of the digital good — the token, rather than the thing the token represents.

What is a non fungible token (NFT)?

A non-fungible token ( NFT) is a unique digital identifier that is recorded on a blockchain, and is used to certify ownership and authenticity. It cannot be copied, substituted, or subdivided. The ownership of an NFT is recorded in the blockchain and can be transferred by the owner, allowing NFTs to be sold and traded.

Can a NFT be duplicated?

While copying an NFT's digital file is always possible, the NFT itself offers proof of ownership of the asset, which can't be duplicated. This makes it similar to fine art investing. For instance, Van Gogh's Starry Night can only have one owner ( MoMA ), even though the image has hundreds of thousands of reproductions. What are NFTs used for?

Are NFT images enforceable?

Furthermore, the ownership of an NFT on the blockchain does not inherently convey legally enforceable intellectual property rights to the file. It has become well known that an NFT image can be copied or saved from a web browser by using a right click menu to download the referenced image.