<aside> 🌱 An NFT is a digital asset that contains a certificate of ownership backed by the blockchain. These digital assets could be anything from a .jpeg image to a video or sound clip. NFTs currently are mainly digital artworks, however, there are many different uses for them.
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<aside> 🌱 NFTs provide a solution to ownership on the World Wide Web. In the past, there have been attempts to monetise online assets through copyright, DMCA, DRM and watermarks. However, none of these worked. The solution to this is a certificate that proves ownership and can be sold on a marketplace, similar to a deed for a house.
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<aside> 🌱 NFT producers are able to receive ongoing royalties from any products they have sold. This means that every time an NFT is sold or resold, a percentage (set by the creator) is automatically sent to the creator. This process is hard-coded within the NFT itself. A hypothetical example of this would be Nintendo creating NFTs that work alongside their Amiibo collection. A digital figurine of Mario with limited supply and in-game usage could be released into the online marketplace. With only one hundred being created/minted, the continuous sale and resale of them would generate ongoing revenue from their release and also create a scarcity and price increase as there is a limited supply of them.
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