Why Don't You Own An NFT Completely?
With the current hype surrounding NFTs, it is not surprising that many people are starting to question their validity and ownership. Here, we will look at things you should know before buying an NFT.
NFTs can be a great way to own a piece of an asset. NFTs or non-fungible tokens first caught the public's attention when a digital collage by an artist named Beeple sold for US$69 million (GB£51 million) at Christie's in March 2021. Since then, there have been many different uses for these tokens.
Notably, many are traded as collectibles on exchanges like OpenSea and Rarible. Recently, we saw a series of 8,888 adorable "Pudgy Penguins" make a splash as each reflected its unique character, with one selling for a record 150 ethereum (about 400k USD).
Whether they're a crypto art on the blockchain or a virtual pet that can be collected, each token is essentially a 'proof of ownership.'
Unlike physical collectables, which you can display in your home or even frame on your wall, some NFTs won't let you show off the asset to other people unless it's on the blockchain network. So what does this mean for people who are into collecting tokens?
The Outlook
It is essential to understand the basics of NFT technology and what is meant by "fungible." NFTs or Non Fungible Tokens are collectibles. It's always possible for people to trade collections of diverse assets: music, art, rare books and coins. But these assets are not necessarily "fungible" — a term derived from the Latin word meaning "to perform" — as it can prove very difficult to trade one object that is any different from another.
Limited Rights
NFTs, let you share your work with people who appreciate it. You can directly sell limited editions of photos, music tracks, or art — as long as they're not copied.
Non-fungible tokens let you reach your audience directly.
So whereas previously it was not possible to sell something like the first-ever tweet, or a taco-themed gif, or indeed a piece of art online, now individuals and companies alike can do so as long as they are the rightful owner.
When someone buys an NFT from the creator, they obtain ownership because it becomes their property. After all, an NFT is a digital certificate of ownership representing the purchase of a digital asset traceable on the blockchain.
The trouble with online content is that, by its digital nature, it is easy to share, copy and reproduce. Buyers of NFTs need to understand that they would be infringing the copyright if they engage in such activities without the right holder's permission. The only way such rights can be transferred is through the terms embedded in the NFT, in the form of a licence.
The Solution To Copyright
Owners who own digital assets off-chain currently have no tool to verify an asset's authenticity. Even when minted as an NFT, collectors cannot self-verify an asset without the complex process of auditing the blockchain. It is a significant barrier to most users, which benefits counterfeiters.
REV3AL Technology is the world's first NFT authentication technology . It enables artists, collectors, traders and other participants in the digital spectrum that incorporate blockchain and non-blockchain technology, simplifying NFT authentication or verification in the real world.
