Understanding NFTs

[mikebj22]

NFTs are just digital art, music, video games, etc. that are coded into the ethereum blockchain, correct?

I tried using the search bar to find previous posts but kept getting error message.

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[pakhitheboss]

In simple word. NFT are unique digital assets that cannot be replaced. You can view them but you cannot edit, replace or change them. It started with Ethereum Blockchain but has no shifted to other Blockchains like BSC, Solana and Matic becuase of cheap transaction fees.

[tranthidung]

NFTs are just digital art, music, video games, etc.

NFTs have multiple use cases and digital arts, music, video games are just part of them. In future, the NFT technology will be used in more industries such as finance, data storage (we already have some data scientific companies apply NFT for health records, etc.), land or human resource management, etc.

Last two years, NFTs are hyped and cause people to think it as a scam trend but time will tell and above are my opinion. I aware that there are many scam projects were created recent months and try to abuse the NFT trend to steal money from inexperienced and naive investors. However, don't equate scam projects with good projects. They can be created by same technology but good are good, bad are bad and scam are scam.

that are coded into the ethereum blockchain, correct?

Inaccurately! NFTs can be built on different blockchain, ERC20, BSC, SOL, DOT, Polygon, AVAX, etc. The trend is projects try to build up their products on multiple chains, cross-chain.

[mk4]

They are not "coded into the ethereum blockchain". The media file is still uploaded on either a centralized server, or through IPFS. The only thing that goes into the blockchain(unless you're using something like Arweave) is the digital signature.

[mikebj22]

In simple word. NFT are unique digital assets that cannot be replaced. You can view them but you cannot edit, replace or change them. It started with Ethereum Blockchain but has no shifted to other Blockchains like BSC, Solana and Matic becuase of cheap transaction fees.

So lets say I bought a 7 second clip from the NBA showing Lebron James dunking on two people and made it an NFT.  Let's say the same video is on YouTube.  First, how do I get/transfer a clip like this or another example like a painting I made on the blockchain?  What makes NFTs unique?  Is it that I will be the only owner of the clip on the blockchain.

[mikebj22]

They are not "coded into the ethereum blockchain". The media file is still uploaded on either a centralized server, or through IPFS. The only thing that goes into the blockchain(unless you're using something like Arweave) is the digital signature.

So a painting, music, video game NFTs are all uploaded to the server but the blockchain is only there to confirm authenticity of product via digital signature? 

[Oshosondy]

So a painting, music, video game NFTs are all uploaded to the server but the blockchain is only there to confirm authenticity of product via digital signature? 

That is the function of blockchain, to make things to be transparent including non fungible tokens. But what makes your token to be authentic is the private key to the token, the private key shows that you owns it.

[pooya87]

NFTs are just digital art, music, video games, etc. that are coded into the ethereum blockchain, correct?

Interestingly enough this is a very common misconception. The fact is that NFTs are nothing more than just another useless token that in fact have nothing to do with "digital art, etc.". They are just selling these tokens with a promise that there is a link between them and whatever digital stuff you buy from them, usually it is a hash to create that link.

Now with that clarification you an clearly see that if that centralized server that stores the digital goods goes offline that NTF is not going to do anything for the owners since they no longer have their "goods"!
Another issues is that there is nothing stopping others who don't have the token to get the same goods! For example someone buys a so called "digital art" for a lot of money through an NFT and receives the "art" but also anyone else who has not spent a dime would also get the same "digital art"!

[mk4]

So a painting, music, video game NFTs are all uploaded to the server but the blockchain is only there to confirm authenticity of product via digital signature? 

Pretty much; and pretty much just a proof of ownership to the "original" one. Sounds really stupid at the surface level but I don't know, maybe some smart dude can make something great out of the concept. Some people are calling for digital tickets(like how you can collect old vintage concert tickets) or something.

[cabron]

NFTs are booming with unimaginable prices. You can't believe some of them are worth that much. But according to some the brag themselves to be experts, these NTFS are used to launder money. According to them, they are the ones who created the NTF and they are also the person who bought the NFT for the highest possible price.

This is adding more to the negative news on crypto. But I think the market of NFTs is just not helping the crypto market as a whole.

[odolvlobo]

So a painting, music, video game NFTs are all uploaded to the server but the blockchain is only there to confirm authenticity of product via digital signature?  

The media file may or may not be uploaded to any server, but I think that uploading to IPFS is common. The NFT itself lives in a blockchain. An NFT generally contains a hash that associates the NFT with the media file. Authentication is done by comparing hashes, but it must be noted that the hash of a copy of the file will also match the NFT, so an NFT cannot be used to determine which is the "original" and which is the "copy".

Ownership of digital art is handled by copyright law, and owning an NFT does not necessarily grant you the copyright. Similarly, owning a physical piece of art does not automatically grant you the copyright. Some artists transfer the copyright to the owner of the NFT, but others do not.

So in the end, what does it mean to own an NFT? If the artist transfers the copyright to the owner of the NFT, then the NFT owner can reasonably say that they "own" the art because legally they can control how others copy or use it. If the artist does not transfer the copyright to the NFT owner, then the owner of the NFT owns nothing more than a commemorative token.

[hatshepsut93]

They are not "coded into the ethereum blockchain". The media file is still uploaded on either a centralized server, or through IPFS. The only thing that goes into the blockchain(unless you're using something like Arweave) is the digital signature.

So a painting, music, video game NFTs are all uploaded to the server but the blockchain is only there to confirm authenticity of product via digital signature? 

Not all NFTs come with digital signatures from the creator. NFT at its core is just a unique token, and this technology isn't even new. Like others have mentioned, there are different ways of establishing the link between the token and the thing that it is supposed to represent, and most of the time such link is quite weak.

NFTs are not officially recognized by any government, which can often mean that they are practically worthless, because you can't defend your ownership if it would get violated.

[Orange89]

As i already say hype will benefits and Nft is the ongoing trend of the market alot of exchanges and big influncer launching their own Nft that are been sold for 1000$ of dollars i am very much confident about the Nfts and their future

[leea-1334]

They are not "coded into the ethereum blockchain". The media file is still uploaded on either a centralized server, or through IPFS. The only thing that goes into the blockchain(unless you're using something like Arweave) is the digital signature.

Something that actually a lot of NFT developers and projects either do not understand or do not even bother to tell their users. This blockchain data only stores the signature and also points to the location of the file.

Something also we really need to remind people.

To everyone who does not believe this. Please Google "NFT Error 404" to see all the examples of what could happen to your NFT if the centralized server storing it deletes the file.

[vanesha]

Yes that is a brief explanation, but the digital art connected to a decentralized system on the blockchain with extra security, even ordinary NFT is created to have their own uniqueness so that it has a high price in the market. It's just that NFT has not been widely used in many industries, nowadays it is just a popular game.