Blockchain Cryptocurrency NFT Chapter 10 – Digital Art And NFT

Blockchain Cryptocurrency NFT Chapter 10 – Digital Art And NFT

Blockchain Cryptocurrency NFT Chapter 10 - Digital Art And NFT
Blockchain Cryptocurrency NFT Chapter 10 – Digital Art And NFT

Fueled by the wealth recently created by digital currencies, major art dealers such as Christie’s and Sotheby’s have begun selling non-fungible tokens associated with unique digital artworks. What are non-fungible tokens, how does this relate to blockchain, and what do we know about this ancient market for digital art? It appears that digital art can be added to the growing list of possible applications of blockchain technology, which has now become part of modern life.

NFTs are non-fungible tokens issued on a distributed ledger such as a blockchain. They are similar to cryptocurrencies such as Bitcoin in that they can be individually identified and are authenticated by a decentralized system of nodes via a consensus protocol. However, they differ from cryptocurrencies in that they are each unique, indivisible, and “non-fungible. “1 NFTs are stored in “smart contracts,” which are automatically executable code that runs on the distributed ledger on which the NFT is recorded. They provide a method of “provable uniqueness” and ownership for digital artwork, images, music, and other content. NFTs are provably unique because each image and content is associated with a single token stored in a smart contract on the distributed ledger, and its ownership can be irrefutably established. Even if other people own copies of the same content, only one person can own the specific token that confirms ownership of the content. Currently, most, but not all, NFTs operate on the Ethereum blockchain. NFTs could help realize the long-heralded but elusive goal of making blockchain technology a powerful tool to protect the rights of artists to profit from their works without the need for intermediaries, and to protect investors by helping to prove the provenance of artworks.