How do NFTs work? (NFT Art)
Non-fungible tokens (NFTs) are unique digital assets verified using blockchain technology. Unlike cryptocurrencies like Bitcoin or Ethereum, which are fungible and can be exchanged on a one-to-one basis, NFTs are one-of-a-kind and cannot be replaced with something else. In the context of NFT art, artists can create digital artworks and mint them as NFTs, which are then stored on a blockchain, providing a secure and transparent record of ownership and provenance.
The process begins when an artist uploads their artwork to an NFT marketplace. They then create a digital certificate of ownership by minting the art as an NFT. This involves creating a smart contract—self-executing contracts with the agreement directly written into code—that contains the unique details of the NFT, such as the creator’s information, the artwork’s description, and payment conditions.
Once minted, the NFT can be bought, sold, or traded on various platforms. Buyers acquire the token that represents ownership of the original artwork, even though the image itself can be freely shared online. This uniqueness and verifiable ownership are what give NFT art its value, allowing artists to monetize their digital creations and collectors to invest in unique pieces of art.