Is Non-fungible Token(NFT) what Digital Art needs?

Source: Livemint

What is the News?

Non-fungible tokens(NFT) have made digital art a worthy collectible by solving the problems of provenance and duplication.

What are Fungible and Non-Fungible assets?

• A fungible asset is something that can be readily interchanged like money. With money, you can swap a £10 note for two £5 notes, and it will have the same value.
• On the other hand, a non-fungible asset means it has unique properties which cannot be interchanged with something else. Example: It could be a painting that is one of a kind. You can take a photo of the painting or buy a print, but there will only ever be one original painting.

What are Non-Fungible Tokens(NFTs)?

• Non-Fungible Tokens(NFTs) are unique cryptographic tokens that exist on a blockchain and cannot be replicated.
• They are one-of-a-kind assets in the digital world that can be bought and sold like any other piece of property, but they have no tangible form of their own.
• The digital tokens can be thought of as certificates of ownership for virtual or physical assets.

How do NFTs work?

• Traditional works of art such as paintings are valuable because they are one of a kind. But digital files can be easily and endlessly duplicated.
• With NFTs, artwork can be “tokenized” to create a digital certificate of ownership that can be bought and sold.
• As with crypto-currency, a record of who owns what is stored on a shared ledger known as the blockchain.
• The records cannot be forged because the ledger is maintained by thousands of computers around the world.
• Similarly, NFTs can also contain smart contracts that can solve the problems of provenance and duplication of the art.