NFTs (non-fungible tokens) are a unique digital token collectible that represent the proof of ownership for a specific digital or physical work, acting as a digital certificate of authenticity for that item. NFTs are “minted” (uploaded) on the blockchain, where it cannot be duplicated, nor modified, making NFTs one of the most effective, secure, and creative ways to store data.
While a common narrative surrounding NFTs has been focused on the buying and reselling of high-priced digital art pieces, the utility and value behind “non-fungible tokens” is found in their ability to validate and store information of all kinds. Anything from concert tickets, to drum samples, to car titles can be minted as an NFT and stored securely on the blockchain.
NFTs are a vehicle for artists to control ownership of various works, protect intellectual property, as well as, establish innovative ways to directly engage and connect with their fanbases.
The emergence of Web 3.0 tools gives creators the ability to establish their own decentralized economy and network, free of third-party interference.
Curated marketplaces on the blockchain live independently as their own digital ecosystem, operating on a decentralized network run by validator nodes (algorithms) that keep the platform functional. All transactions on the blockchain are then made directly by the individual buyer and seller, peer-to-peer (P2P).
Smart contracts are lines of code that can be embedded within computer systems allowing the self-execution of a predetermined set of functions. These can be audited by all parties and once set into motion cannot be reneged on.
For example, smart contracts can be used to facilitate the autonomous payouts of royalty splits amongst collaborators, inlay unlockable content, and trigger rewards for completing specific actions.
