NFT Demystified: Navigating the Digital Art Revolution

Author

Droom Droom
September 11, 2023

With the rise of digital art 🖼️, understanding NFTs becomes essential. Here’s a breakdown:

  1. What is an NFT? 🧐

  • NFT stands for non-fungible token. It’s a unique code on a blockchain that refers to a digital artwork.

  • It’s like owning a cloakroom ticket 🎫: you own the reference, not the artwork directly.

  • Art isn’t usually stored directly on the blockchain due to its size. It’s stored elsewhere online.

  • Caution: If the artwork’s online storage isn’t decentralized, it could vanish!

2. Copyright ©️

  • Buying an NFT ≠ owning the artwork’s copyright. Think owning a painting 🖼️ but not its reproduction rights.

  • Digital art can be easily copied, but the original NFT holds distinct value.

3. Licenses 📜

  • Licenses define what NFT owners can or can’t do with the art.

  • Example: Larva Labs’ CryptoPunks faced licensing issues, but Yuga Labs clarified things later.

  • Meanwhile, Yuga Labs’ Bored Ape Yacht Club NFTs gave broad licenses, leading to NFT-themed businesses like BAYC restaurants 🍔.

4. Identifying the License 🔍

  • Check the project’s terms and conditions, but beware — they can change! It’s best to download and keep a copy.

5. Potential Pitfalls ⚠️

  • Ensure you’re buying from the genuine copyright owner to avoid legal troubles.

  • Some art isn’t copyrighted, like AI-generated pieces or older artworks. Owning a Mona Lisa NFT doesn’t mean exclusive ownership.

6. Trust 🤝

  • Often, you must trust the project owner. They can issue multiple licenses or create similar NFTs.

In conclusion, NFTs introduce the groundbreaking concept of owning a unique digital asset, but always be aware of what you’re truly purchasing! ⚖️🔗🎨🔍📜⚠️🤝