NFT stands for a non-fungible token, simply put this means that it can’t be replaced with something else. NFTs are 100% original digital artifacts, similar to the idea of a one-of-a-kind trading card. With any new technology, there is some confusion on exactly how NFTs work and if they are as unique as they claim to be. After all, many people wonder what’s to stop them from screenshotting an NFT and claiming that their copy is the same as the original work. In this article, we’re going to explain how NFTs work and what makes them original.
How do NFTs work?
If you’ve been involved at all with cryptocurrency you should be familiar with the term blockchain. Blockchain is a type of technology that acts as a digital ledger, keeping track of different transactions in a way that makes it virtually impossible for someone to manipulate them. Blockchains allow you to store information in digital format in a decentralized way so that anyone can verify what has been done and who owns what, which makes it great for keeping a secure record of transactions.
Currently, most NFTs are part of the ethereum blockchain and this is what is used to verify ownership of an NFT. Each NFT has its transaction hash, which makes it unique and non-replaceable. The blockchain technology that supports this collects the transaction data and stores it in blocks that form a blockchain. This information is stored definitely and it’s available for public viewing and verification. You can track and verify a specific NFT transaction using websites like etherscan.io, where you can search by address, transaction hash, block, token, etc.
What can be an NFT?
NFTs can be any original type of work such as drawings, music, images, etc. However, most NFTs that are currently being sold are digital artwork. Almost any digital asset can be bought and sold as an NFT.
What is there to stop people from copying and NFT?
In short, there is nothing to stop people from making a copy of an image that was sold as an NFT. Buying an NFT simply shows that you have ownership of the original copy of the image. If you compare it to physical art, anyone can buy a copy of the Monet but only one person can own the original copy. Similarly, buying an NFT means you are the one person that owns the original piece of art.
Can NFTs be stolen or duplicated?
The short answer is yes, if someone gains access to the account where your NFT is being held they can steal your NFT. It’s not that the hacker can manipulate the actual blockchain technology that allows ownership of NFTs, what they tend to do is target the digital services and platforms that people use to buy, sell and trade the NFTs and try to compromise those platforms to get access to the accounts and transfer ownership of the NFTs.
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