Posted: 03-26-2022, 10:27 PM
A non-fungible token (NFT) is a non-interchangeable
[
clarification needed
]
unit of data stored on a
blockchain
, a form of digital
ledger
, that can be sold and traded.
[1]
Types of NFT data units may be associated with digital files such as photos, videos, and audio. Because each token is uniquely identifiable, NFTs differ from blockchain
cryptocurrencies
, such as
Bitcoin
.
NFT ledgers claim to provide a public
certificate of authenticity
or
proof of ownership
, but the legal rights conveyed by an NFT can be uncertain. NFTs do not restrict the sharing or copying of the underlying digital files, do not necessarily convey the
copyright
of the digital files, and do not prevent the creation of NFTs with identical associated files.
NFTs have been used as a
speculative asset
, and they have drawn increasing criticism for the energy cost and
carbon footprint
associated with validating blockchain transactions as well as their frequent use in
art scams
[2]
. The NFT market has been compared to a
Ponzi scheme
.
[
clarification needed
]
unit of data stored on a
blockchain
, a form of digital
ledger
, that can be sold and traded.
[1]
Types of NFT data units may be associated with digital files such as photos, videos, and audio. Because each token is uniquely identifiable, NFTs differ from blockchain
cryptocurrencies
, such as
Bitcoin
.
NFT ledgers claim to provide a public
certificate of authenticity
or
proof of ownership
, but the legal rights conveyed by an NFT can be uncertain. NFTs do not restrict the sharing or copying of the underlying digital files, do not necessarily convey the
copyright
of the digital files, and do not prevent the creation of NFTs with identical associated files.
NFTs have been used as a
speculative asset
, and they have drawn increasing criticism for the energy cost and
carbon footprint
associated with validating blockchain transactions as well as their frequent use in
art scams
[2]
. The NFT market has been compared to a
Ponzi scheme
.