What is NFT: hype, art, or technology of the future?

What is NFT

The excitement around NFT is growing every year. People invest real money in virtual pictures, buy plots of digital land, and visit online galleries of cryptographic art. In the cards, we tried to understand the essence of NFT technology and its prospects.

Explain what NFT is in simple words.

NFT is a certificate proving that you own a unique object in the digital realm.

But this certificate is not a paper certificate but a cryptographic certificate. After purchasing on an exchange, it allows lines of code to record in a blockchain the right to own an asset. This asset or content can be a picture, a gif, an animation, a song, a movie, a tweet, a post, a game character, or a weapon from a game considered exclusive in the digital world. The link to the original is stored in perpetual IPFS storage, and through the use of advanced cryptographic security methods, it is virtually impossible to forge the information.

If the copyright for works of art and intellectual property in the real world is protected by laws, the NFT technology plays a similar role in the virtual world. It is an electronic registry in which ownership records are kept. But sometimes, the virtual and real worlds overlap. For example, in 2021, Banksy’s tangible painting Morons, bought for $95 thousand, was burned in a live broadcast, and its digital copy was put up for sale. During the auction, the NFT copy of the painting was sold for about $400,000. There are many examples of unique nft tokens, for example metarun nft.

Are there legal rights to the purchased NFT token?

No, under copyright law, the token means nothing. For example, anyone can download an NFT picture and put it on their desktop or avatar, and there is no liability. That is, NFT cannot forbid copying. It only indicates the owner of the original copy of the digital file. You could say that ownership is based only on social agreement. As Wired points out, the NFT is just a digital souvenir.

Nevertheless, Rosreestr is already beginning to interact with the public via blockchain. For example, they have started to register contracts of shared ownership in construction with its help. This means that in the future, if legal systems recognize the legitimacy of NFT, they may well become analogous to official documentation, which will protect intellectual property from unauthorized use on the network, confirm ownership, identify individuals, etc.

What do I have to do to create an NFT and make money from it?


These are simple actions that everyone can do, but you should not forget that the probability of accidental earnings on such a transaction is very small. NFT market is specific, and it is necessary to understand the audience’s demands, stimulate their interest, and PR the author’s image. For this work, there are professional teams who understand how this market works and offer promotion services.

It is often said that blockchain technology and NFT will change the world. What exactly do they mean?

Besides the fact that NFT can be equated to documents and practically save the world from bureaucracy, protect copyrights and intellectual property on the Internet from theft, and provide artists and gamers with a profitable business model, there is even more global ideology inherent in this technology – decentralization. You can eliminate intermediaries such as lawyers, politicians, and banks with blockchain technology. You can no longer depend on their conditions because there are smart contracts, which do not require a human, and the machine code will work everything as precisely as possible; there is bitcoin, a currency, all operations which are securely protected; there is NFT, which allows you to transfer any product to blockchain and simplify all interactions with it.

Early blockchain ideas focused on limiting corruption, fraud, theft, and misuse of public resources by government and citizens. However, later cases of cryptocurrency theft came to light and showed that even blockchain does not provide one hundred percent security. Nevertheless, these are promising technologies that require a lot of effort and budget to implement. Only time will tell how it will evolve.

You need to register on a marketplace – a platform for buying and selling NFTs. For example, OpenSea, Foundation, SuperRare, Raible, Nifty Gateway, etc.

Create a cryptocurrency wallet and purchase cryptocurrency that the marketplace accepts to pay a commission (gas) for the right to place (minify) your non-exchangeable token in the blockchain platform (on average, from 2.5 to 15% of the NFT value). It is possible to publish objects for free on some platforms, but a percentage of the sale is charged.

Create an object, upload it, and add a description. Once you click “Create,” payment is deducted, and the token is auctioned off.

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