What are NFTs & How Do Copyright & Moral Rights Apply to Digital Assets?
A non-fungible token is a unique digital certificate that functions as proof of ownership, or authenticity, of a digital asset – but it is not the asset itself.
In the context of digital artwork, a unique code or token (the NFT) is created which corresponds with the artwork, usually a limited edition of the work. In this way, NFTs are analogous to the title deed in relation to a house, or a certificate of authenticity for a limited edition physical artwork or record.
'Non-fungible' simply means the token cannot be interchanged with another, unlike the way in which bank notes or Bitcoin can be interchanged. Because NFTs are non-fungible, and because they are stored in a blockchain (more on this below), this has enabled an entirely new market in digital artworks to be created whereby digital works can be readily bought and sold.