NFT: A cross-section of digital art, blockchain, and law

In simple terms, a non-fungible token (NFT) could be understood as a one-off kind, non-divisible representation of any digital art form.

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Since the NFT cannot be exchanged with any other NFT, it becomes non-fungible, giving it a unique feature and high value.

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An NFT consists of two major components, which every buyer must understand before they put in their money to buy one for themselves.

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NFT’s are digital assets that provide a database on a distributed ledger giving details about the actual asset (the digital artwork, collectible, music, or video asset) through the metadata.

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The asset is generally stored on other forms of decentralised and distributed file storage systems (DFSS) provided by various service providers.

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The purchase of NFT gives authentication to the purchaser that they are the owner of the NFT; in simpler terms, it’s a certificate of ownership of the NFT and not the rights associated with the same.

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The buyer of NFT receives a copy of the copyrighted work and the NFT, which is a digital authentication of ownership of the NFT and not the underlying asset owned by the original creator.

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