WHAT IS AN NFT?
By now you have probably heard from it, but perhaps you are still wondering “what is an NFT?” I’ve been selling NFTs for a couple of years now (you can find a bunch of my NFTs here), so I might be able to explain it to you. Perhaps it’ll feel kind of complicated, but I’ll do my best to keep it simple.
Ehhh… what?! NFT stands for non-fungible token. Non-fungible means it’s irreplaceable, unique. It’s like a super special, ultra rare, Pokémon card. When you put up your artwork (or music or any digital ‘thing’) as an NFT, you can publish just one edition or a couple (or a whole bunch) of them. Once you have made your decision on this, it cannot be changed. You can compare it to limited edition art prints, that would be signed with 5/20 for instance. Which would tell you that there are only 20 copies in the world, and you are holding the fifth in your hands.
So what do you get when buying an NFT?
When an NFT gets launched on the blockchain, it gets a unique identifying code. When you buy an NFT, you own that code and proof of your ownership will be put on te blockchain. The blockchain is like a digital ledger, it will keep track of who owns the NFT. You can display the NFT you bought anywhere you like, or you can re-sell it, possibly making a profit. Of course people can copy or screenshot the NFT, but they wont own it. Just like you can make pictures of the Mona Lisa, the original will remain in the museum.
How about the artist?
As an artist, you keep the rights to make physical prints of your artwork, or stickers, t-shirts, whatever. But you cannot place more copies on the blockchain as NFTs. When an NFT you have sold gets resold, you will get a small percentage of that profit by the way.