Since that initial connection with art, we are seeing NFTs being used in numerous other ways.
Notably, many are being traded as collectibles on exchanges likeOpenSeaandRarible.
They might think they could display it on a website, but this isnt necessarily the case.
The new frontier
To understand NFTs, it is important to understand what is meant by fungible.
Fungible is derived from the Latin verbfungi, meaning to perform.
In the broader context, this means interchangeable and relates to whether something can be exchanged.
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On the other hand, NFTs cannot be exchanged like for like with another.
They are each one of a kind or one of a limited edition.
Content sold as NFTs can be created in many ways.
It can be computer-generated, which was the basis for the production of10,000 unique CryptoPunksin 2017.
It can reflect a collaborative work, such as the English singer-songwriter Imogen Heaps series ofmusic NFTs, Firsts.
These involved her improvising alongside visuals provided by artist Andy Carne.
Limited rights
NFTs allow the owner of a limited work or collection to reach their audience directly.
But the NFT holder does not have any other rights to the work.
The situation is the same if you buy a physical collectible.
Owning a painting does not automatically give you the right to display it in public.
In other cases, creators have specifically restricted all commercial use of the work.
For example, theKings of Leonstipulated that their NFT music was for personal consumption only.
CryptoKitties allow owners to make up to US$100,000 a year from them.
Incidentally, buyers should also be aware that the blockchain cannot absolutely know whether a creative workis authentic.
Someone can take another persons work andtokenize itas an NFT, thereby infringing the rights of the copyright owner.
you better be sure that you are buying something that originated from the creator.
