- Home
- All Modules
- NFT World
- What’s a Non-Fungible Token?
What’s a Non-Fungible Token?
So, an NFT serves two purposes; it guarantees authenticity and proves ownership.
Just like taking pictures of an original piece of art doesn’t make you its owner, the same is true with NFTs.
Saving an image of the Mona Lisa from the internet doesn’t give you any rights to claim ownership of it or sell it, and that’s exactly what the non-fungible token does on the blockchain.
An NFT is a piece of information that defines the owner of the specific asset and at the same time guarantees the authenticity of the associated digital resource (i.e. art, video, article, etc.)
Such a token cannot be manipulated, changed or deleted thanks to the blockchain and the distributed ledger.
As there is no central authority to oversee the blockchain operations, the millions of nodes (i.e. computers) that run the blockchain protocol are destined to keep these tokens intact and immutable.
When an NFT is purchased, sold or resold the token will reflect this change by amending the corresponding public address of the new owner’s wallet.
Of course, that will require the consensus of the majority of the attached nodes on the blockchain to happen. You see, thanks to blockchain technology, no user (or users) can change the info or take advantage of it.
The token also specifies whether the creator of the NFT may retain ownership rights and earn any resale royalties.
As you might have guessed, NFTs help creators to claim ownership of their work and also specify the exact rights. That was something that was missing or suffered in the past.
One last bit of information is in regards to the new owner of the asset. Again, the token specifies the exact rights and privileges.
