- May 3, 2021
- Posted by: Kirsten Campbell
- Category: Blog
WTF is an NFT?
A non-fungible token.
Fungible means different, whereas non-fungible means unique. Ergo, an NFT is a unique digital asset. These assets are the conduit for tokenizing items like artwork.
How is an NFT the same as Bitcoin?
They both run on blockchain.
How is an NFT different from Bitcoin?
Each NFT is as unique as a fingerprint, whereas Bitcoins are interchangeable like the $5 bill in your wallet.
How can artists/creators make money selling NFTs?
NFTs are structured so it’s possible for the creator to secure royalties each time their piece gets sold. NFTs can’t be forged, faked or replicated.
Can music artists also make money selling NFTs?
As with other art, it is possible for music creators with NFTs. However, money generated from NFTs would not be the same as, nor replace, the traditional music royalties structure.
Known as the ‘stock market of music’, a DigitalAMN portfolio company, Vezt, Inc., discusses NFTs and music royalties in a recent interview.
Are NFTs connected to Wall Street?
Only in that they are both speculative. What you’ve got is only worth what someone else is willing to pay for it.
What can be sold as an NFT?
Technology attorney Samir Patel, said it best: “Any NFT is nothing more than ownership over metadata – no other ownership rights are transferred.” So you won’t get keys mailed to your house if you buy digital real estate.
Since NFTs are digital, can’t they just be copied?
Yes, but like artwork, there’s still an original. Even if photos are reprinted hundreds of times, they each hold different value in the marketplace, and the original is priced accordingly. Kind of like how a real Monet would certainly be priced higher than the reprints, no matter their quality.
The creation of the NFT concept is partially based on so much digital artwork being copied. This allows the original or limited editions to have a foundation of authentication that ensures their origin.