You may still be scratching your head as to why some NFTs have sold in the millions. However, an NFT comes in two parts.
In short, you cannot capture a screenshot of an NFT.
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Or at least not in the way you think you can.
You can screenshot the image that comes with an NFT, but that’s not really what an NFT is; it’s just a feature that comes with it.
See, NFTs come in two parts. The image behind the NFT, which you are probably familiar with, and the code or smart contract that turns an NFT into an NFT.
NFTs stand for non-fungible tokens. The keyword here is ‘token’. When you own an NFT, you don’t own the image; you own the token that comes with the image.
This token is a by-product of a published smart contract, the code of which is minted on a Blockchain like Ethereum. These smart contracts are designed in a way that they are immutable and unique from each other.
What makes Ethereum Different From NFTs?
You may be familiar with Ethereum and how it can be divided into fractional pieces for consumers to buy and sell. In simple terms, Ethereum is a unique contract and it is not unique to each holder. If you and I have an Ethereum, it’s the same.
What makes NFTs valuable is the fact that they are all different, none are the same.
Why Is Something That Is Not Tangible Worth So Much?
What makes an NFT valuable? The eternal question. You may still be scratching your head as to why some NFTs have sold in the millions and why people are even buying them to begin with.
New investors flock when they see an emerging opportunity. We would be wrong to say that it is all hype when there are underlying features that make NFTs so great. But, in most cases, they really shouldn’t be worth what they are.
We have seen many projects in the last year implement some kind of utility alongside NFT. This could be access to a private event, using in-game items, earning rewards within the ecosystem, and really anything else.
Some people even see NFTs as a community, and buying an NFT can grant you access to a group of like-minded people that you might not be able to find as quickly without them. And this goes beyond profile pictures with certain features attached. DeveloperDAO is a great example of using NFTs to collaborate on a larger scale, giving developers access to resources and people who want to further grow and develop within the Web3 space.
When it comes to this type of technology, the possibilities are endless. At the end of the day, people are willing to pay whatever they are able to to be a part of something new and potentially profitable.
Can You Be Sued For Taking A Screenshot of An NFT?
Now we said that you do not ‘own’ the image behind the NFT, which is true, but in some cases, the users who buy these NFTs own the intellectual property or ‘IP’ of the image. And this works the same way as IP for most things, like brand logos, artwork, and music.
If you just took a screenshot of the art as NFT then no you won’t be sued. However, if you then continue to coin your own NFT with that same art, or even use it in some commercial way, then you better believe that a lawsuit may be headed your way.
Companies like Yuga Labs, creators of the ‘Bored Ape Yacht Club’, have taken action on the matter. Yuga Labs recently took Twitter user Ryder Ripps to court after selling a ‘copycat’ parody collection of the infamous monkey NFTs which they accused him of misleading buyers and making millions off the sales.
The owners of these NFTs can even sell the rights to their ‘IP’ for companies to use commercially, making thousands of dollars in the process.
NFTs And Digital Ownership
In fact, there are different types of NFTs, some of which don’t even come with an image attached. So why is that even a thing?
Well, NFTs are a form of digital ownership and provide indisputable proof of authenticity. This is something very valuable and is what makes NFTs such a revolutionary product.
NFTs and blockchain technology can prevent theft because once something is on-chain, it is visible for the world to see and, if implemented correctly, cannot be changed. NFTs are and can be much more than images of monkeys.
Take your passport for example; it is a form of identification that is directly linked to you. However, in physical form, it can be easily replicated or fooled. Now imagine if it was an NFT that couldn’t be duplicated or altered in any way. In some cases, NFTs can even be locked to a single account, preventing transfer to someone else.
Identity Theft Solved! Right?
Well, we have a long way to go until we see some success on that. There are still a lot of issues that come up when doing this, like adoption within the space, and of course, regulations.
This type of breakthrough is not going to happen overnight. The technology is new and still being discovered.
Users in the space are continually improving and advancing with these new technologies, and it will take time until we see real adoption.
NFTs are changing the game for how we consume, collect, improve communities, and reclaim ownership of our property.
For now, NFTs are simply called a ‘fad’, but what’s to come won’t be.