NFT is the short form of Non-Fungible Token, which is the basic unit of the data which is stored on a blockchain and it is not interchangeable. It is a collection of digital information which can be traded or sold. NFTs may be made up of the image, video, or audio format, and has a unique identification that is not like cryptocurrencies like Bitcoin or Etherium.
The ledger of the NFT provides a public certificate of authenticity or proof of ownership, however, an NFT can convey legal rights, but those rights cannot be guaranteed but do not stops the copying and sharing of the fundamental digital files. Copyright or intellectual property rights to the digital asset the NFT represents do not automatically attach to an owner of an NFT. The seller of an NFT that represents their work may create an additional NFT of the same work since the buyer may not receive copyright to the work. The NFT is therefore not proof of copyright but only proof of ownership. The first known NFT was created by Kevin McCoy & Anil Dash in May 2014, which consists of a video clip made by McCoy’s wife Jennifer. But the NFT gained public awareness after 2016. NFT market got the rapid growth during 2020 with the value triples to 250 million U.S. Dollars. And in the first three months of 2021, 200 million U.S dollars were spent on NFTs.
How does NFT works?
NFTs have been used to exchange digital tokens that link to a digital file asset. Ownership of an NFT is sometimes covered by a license to use the linked digital asset but does not generally confer the copyright to the purchaser.
There are some agreements that only let you use a digital asset for personal, non-commercial use, some contracts allow you to use it for commercial purposes. At a very high level, most NFTs are part of the Ethereum blockchain. Ethereum is a cryptocurrency, like bitcoin or dogecoin, but its blockchain also supports these NFTs, which store extra information that makes them work differently from, say, an ETH coin. It is worth noting that other blockchains can implement their versions of NFTs. NFTs can be anything digital (such as drawings, music, your brain downloaded and turned into an AI), but a lot of the current excitement is around using the tech to sell digital art. So this clears the question in mind “what is worth picking up in the NFT market?”
At OpenSea, we’re excited about a brand new type of digital good called a non-fungible token or NFT. NFTs have exciting new properties: they’re unique, provably scarce, tradeable, and usable across multiple applications. Just like physical goods, you can do whatever you want with them! You could throw them in the trash, gift them to a friend across the world, or go sell them on an open marketplace. NFTs are armed with all the programmability of digital goods, which are different from physical goods. We’re the building tools that allow consumers to trade their items, creators to launch new digital works, and developers to build rich, integrated marketplaces for their digital items.
Azuki #5222 at OpenSea. It’s current price is U.S $ 31,352,164.47 & 9,999 ETH and counting.