How does NFT fractionalization work?

NFTs are fractionalized using a smart contract programmed to generate a predefined number of tokens linked to the original indivisible NFT. These fractional tokens represent a percentage of ownership for each holder of the NFT. The tokens can be exchanged or traded on NFT-supported exchanges.

What are the risks of fractional NFTS?

Fractional NFTs offer the less affluent an opportunity to get involved, but there are still significant risks to consider when investing. Some of these may change as Ethereum migrates to a proof-of-stake ( PoS) system. Lack of regulation: As with many crypto assets, the regulatory aspect of fractional NFTs can represent a legal grey area.

What is an NFT and how does it work?

An NFT is simply another form of cryptocurrency that’s secured digitally via a blockchain; however, where they differ from normal crypto assets is in their fungibility. This means that, while a normal crypto token or fiat money can instantly be replaced by another of the same asset, an NFT cannot.

What is fractional art?

Fractional.art is a popular NFT marketplace and community for fractionalizing and trading NFTs. The platform is decentralized, permissionless, and governed by smart contracts -anyone can access it, but no one controls it. PeckShield and Harchi Audit have verified the protocol to help culture trust in the community.