With the rise of digital art š¼, understanding NFTs becomes essential. Hereās a breakdown:
What is an NFT? š§
NFT stands for non-fungible token. Itās a unique code on a blockchain that refers to a digital artwork.
Itās like owning a cloakroom ticket š«: you own the reference, not the artwork directly.
Art isnāt usually stored directly on the blockchain due to its size. Itās stored elsewhere online.
Caution: If the artworkās online storage isnāt decentralized, it could vanish!
2. Copyright Ā©
Buying an NFT ā owning the artworkās copyright. Think owning a painting š¼ but not its reproduction rights.
Digital art can be easily copied, but the original NFT holds distinct value.
3. Licenses š
Licenses define what NFT owners can or canāt do with the art.
Example: Larva Labsā CryptoPunks faced licensing issues, but Yuga Labs clarified things later.
Meanwhile, Yuga Labsā Bored Ape Yacht Club NFTs gave broad licenses, leading to NFT-themed businesses like BAYC restaurants š.
4. Identifying the License š
Check the projectās terms and conditions, but beware ā they can change! Itās best to download and keep a copy.
5. Potential Pitfalls ā
Ensure youāre buying from the genuine copyright owner to avoid legal troubles.
Some art isnāt copyrighted, like AI-generated pieces or older artworks. Owning a Mona Lisa NFT doesnāt mean exclusive ownership.
6. Trust š¤
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 youāre truly purchasing! āššØššā š¤
To dive deeper, check out the complete article: https://droomdroom.com/decoding-nfts-a-comprehensive-guide-to-digital-art/
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