About NFTs
A non-fungible token (NFT) is a non-interchangeable unit of data stored on a blockchain, a form of digital ledger, that can be sold and traded. Types of NFT data units may be associated with digital files such as photos, videos, and audio. Because each token is uniquely identifiable, NFTs differ from blockchain cryptocurrencies, such as Bitcoin.
NFT ledgers claim to provide a public certificate of authenticity or proof of ownership, but the legal rights conveyed by an NFT can be uncertain.
NFTs 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.
NFTs have been used as a speculative asset, and they have drawn increasing criticism for the energy cost and carbon footprint associated with validating blockchain transactions as well as their frequent use in art scams and claimed structure of the NFT market to be a ponzi scheme.
What are NFTs actually ? Better and Easier Explained Version
Think of the Mona Lisa- everyone knows how it looks like, there's even prints of the painting, etc. , but there is only one true original copy. That's what makes it special. The art is in the blockchain. So an NFT is a Non-Fungible Token.
Definitions:
NFT= Proof of ownership
Blockchain = receipt
Onchain Royalty= Revenue system
There's onchain licensing and usage rights with NFTs.
So yeah people can copy and paste, but everyone knows which NFT is the real one and which one is worth more because it's on the blockchain. The reason there’s value is because the image is on a blockchain and not just saved in your photos. It has utility and rights.
