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NFT

nft income systems • creative yield models

NFT (Non-Fungible Token) is a unique digital asset stored on a blockchain that represents ownership of a specific item, such as art, music, videos, or virtual goods. Unlike cryptocurrencies, NFTs are not interchangeable one-to-one because each token has distinct properties and value. They are commonly used for digital collectibles, gaming items, and certifying ownership of digital or real-world assets.

Use Case: A musician releases an album as NFTs, granting buyers verifiable ownership of tracks, limited-edition artwork, and unlockable backstage passes.

Key Concepts:

  • Digital Collectibles — Scarce items with verifiable ownership and provenance on-chain.
  • Creator Economy — A system where artists and builders monetize directly via blockchain-based tools.
  • NFT Standards — Technical protocols (e.g., ERC-721, ERC-1155) that define NFT functionality.
  • Secondary Market Revenue — Ongoing royalties from resale of tokenized assets.

Summary: NFTs transform ownership in the digital age by making art, collectibles, and assets verifiable, tradable, and programmable through blockchain. They empower creators while giving users true digital property rights.

Feature Traditional Web3
Ownership File copies with no verifiable provenance On-chain proof of ownership and authenticity
Royalties One-time sales, no resale participation Programmable ongoing royalties
Liquidity Collectors’ markets, limited reach Global, instant resale on decentralized marketplaces
Portability Locked to platform or medium Interoperable across wallets, games, and apps

 
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