What are NFT

NFTs (Non-Fungible Tokens) are tokenised assets that represent immaterial values such as art collections. NFTs are also "intransferable." Whereas fungible assets can be replaced by other equal assets and are thus interchangeable (10 shares, 10 euros, 1kg of rice, etc.) non-fungible assets cannot be replaced by anything and are thus not interchangeable. They are one-of-a-kind assets with highly unique characteristics that cannot be found in any other existing asset.

NFTs, on the other hand, were designed to be indivisible by default and cannot be divided into smaller units. A token, in fact, cannot be divided into new "smaller units" to be assigned to new owners.

The goal of NFT is to provide access to digital works while also proving "ownership" of such works or access. Indeed, "exclusive" access or "ownership" are frequently used to designate a licensee of a digital collection, rather than ownership of the digital artwork itself.

Because they are not registered with any Intellectual Property organisation, NFTs may be especially useful for copyrighted works (unlike trademarks and patents). They may be used to precisely tag isolated works, establishing original authorship, assigning exact timestamps to transactions, publicly determining all subsequent ownership, and thus preventing copy. This could also explain why most of the items represented by NFTs appear to be copyrightable, such as paintings, drawings, and songs.

However, not every item may be valuable or sufficient to be tokenized by NFTs. Assets with multiple owners and subject to co-ownership rules (for example, buildings) may not be suitable for representation by NFTs. The NFT creator should have something that is unique to him and that can be represented by and transferred through an NFT.

In this regard, it is worth noting that NFTs are programmable. In other words, when creating an NFT, you can choose and incorporate various types of information. Among that data is undoubtedly the identification of the owner as well as the price. It is also possible to include the conditions that apply to a specific NFT when it is sold.

Once created, NFTs are recorded in the blockchain. NFTs, like cryptocurrencies and other virtual assets, are stored in digital wallets. A wallet is a programme that functions similarly to a bank account in that it tracks one person's holdings on a specific DLT.

NFTs can then be traded on various specialised marketplaces from their wallets. Smart contracts make NFT transactions possible. Smart contracts, like wallets, are DLT programmes that are triggered when someone associated with the NFT (the purchaser or seller) interacts with it. It functions as an authenticity seal. These interactions are then recorded on the DLT, which ensures the transaction's authenticity.