How does the NFT work?
Why do people pay so much for tweets, digital artwork and YouTube clips? For many, it's hard to understand why anyone would want to pay for something that's available for free online. To understand why there is a huge demand, you need to understand how an NFT works.
An NFT is a unique asset stored on a blockchain. This means that it is traceable, making it possible to see who owns the asset. Ownership is recorded on the blockchain in the form of a cryptographic stamp and metadata that includes the address of the owner's crypto loan book. In other words, anyone using the blockchain can see the digital work, but only one person can own it. All information recorded on the blockchain is traceable and cannot be altered or manipulated. Only the owner of the NFT can change ownership, making the blockchain a very secure place to store digital assets.
It is important to remember that an NFT gives an ownership right to a digital asset. As with the sale of physical objects, the creator retains the copyright to the asset. However, the owner has the right to sell and use the asset. The metadata shows how the asset can be used and what the NFT represents.