Basics of... NFT (Non-Fungible Token)

Recently, the concept of NFT (Non-Fungible Token - Fungible means “Unique and irreplaceable”) has gained in popularity and wider “marketing” because of mainstream medias picking us some crazy stories around them.

Basically, an NFT is a non-interchangeable unit of data stored on a blockchain, a form of digital ledger, that can be sold and traded. But just to be very clear: this is not the same as money you would own and can decide what to do with and only you “see” it… NFT’s do not restrict the sharing or copying of the underlying digital files, do not necessarily convey the copyright of the digital files, and do not prevent the creation of NFTs with identical associated files.

?While someone may sell an NFT representing their work, the buyer will not necessarily receive copyright privileges when ownership of the NFT is changed and so the original owner is allowed to create more NFTs of the same work. In that sense, an NFT is merely a proof of ownership that is separate from a copyright.

So, even if “own” an NFT, other people can use, replicate and share them… You are (potentially) the “legal” owner of the (original) asset, but “that’s it”.

You could for example auction the “Side-eying Chloe” for thousands of dollars and you would own the original image, but the hundred thousands of copies of that image as still out there…

Non-fungible tokens can digitally represent any asset, including online-only assets like digital artwork and real assets such as real estate. Other examples of the assets that NFTs can represent include in-game items like avatars, digital and non-digital collectibles, domain names, and event tickets.

The fact NFT’s could be a “big thing” is supported by people like Michael Dell who recently stated that “I think it’s super interesting” in a CNBC interview.

This article is part of the complete "Basics of..." Serie which you can find here:?https://www.dhirubhai.net/pulse/basics-overview-patrick-roettger/

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