Post by ksartik on Mar 3, 2023 4:01:12 GMT -6
An NFT is a unit of data, stored on a type of digital ledger called a blockchain, which can be sold and traded.[7] The NFT can be associated with a particular digital or physical asset such as images, art, music, and sports highlights[8] and may confer licensing rights to use the asset for a specified purpose.[9] An NFT (and, if applicable, the associated license to use, copy, or display the underlying asset) can be traded and sold on digital markets.[10] The extralegal nature of NFT trading usually results in an informal exchange of ownership over the asset that has no legal basis for enforcement,[11] and so often confers little more than use as a status symbol.[12]
NFTs function like cryptographic tokens, but unlike cryptocurrencies such as Bitcoin or Ethereum, NFTs are not mutually interchangeable, and so are not fungible. NFTs are created when blockchains concatenate records containing cryptographic hashes—sets of characters that identify a set of data—onto previous records, creating a chain of identifiable data blocks.[14] This cryptographic transaction process ensures the authentication of each digital file[clarification needed] by providing a digital signature that tracks NFT ownership.[14] Data links that are part of NFT records, that for example may point to details about where the associated art is stored, can be affected by link rot.[15]
NFTs function like cryptographic tokens, but unlike cryptocurrencies such as Bitcoin or Ethereum, NFTs are not mutually interchangeable, and so are not fungible. NFTs are created when blockchains concatenate records containing cryptographic hashes—sets of characters that identify a set of data—onto previous records, creating a chain of identifiable data blocks.[14] This cryptographic transaction process ensures the authentication of each digital file[clarification needed] by providing a digital signature that tracks NFT ownership.[14] Data links that are part of NFT records, that for example may point to details about where the associated art is stored, can be affected by link rot.[15]