An NFT is a Non-fungible token. Non-fungible means the token is unique and not replaceable. One key use for NFTs is to publicly prove and verify ownership of digital art. Our clients’ NFTs are stored using the Ethereum decentralised blockchain, which is essentially a public ledger or database. The Ethereum blockchain is collectively controlled by all users so there is no single party or group having authority. Decentralised blockchains are immutable, which means the data entered is irreversible, which provides a permanent record of transactions.
When selling an NFT the copyright owner is essentially selling a limited edition. To increase the rarity (and therefore the value) of digital art created by replicating a physical piece, some artists choose to:
- Change the digital copy in order to make it a unique piece separate from the physical original
- Destroy the original physical painting in order to sell an NFT as a one of a kind unique item
The NFT market is now mainstream and hugely popular, with Mike “Beeple” Winkelmann’s digital collage “Everydays: The First 5000 Days” being sold at Christies in March 2021 for $69m, making him among the top three most valuable living artists.
