Like cryptocurrencies, NFTs are bought and sold on specialised platforms. OpenSea is the best-known NFT marketplace.
Like cryptocurrencies, NFTs are bought and sold on specialised platforms. OpenSea is the best-known NFT marketplace.
A sale does not necessarily involve the transfer of the object depicted by the token.
NFTs of famous paintings have been sold, for example, but the buyer does not receive the painting.
What changes hands is a certificate of ownership of the NFT, registered on the blockchain. The certificate must be kept safe in a digital wallet, which can take various forms.
The wallet might be accessed via Metamask, a free internet browser extension, or a secure physical device. It might also take the simple form of a code printed on a piece of paper.
To purchase an NFT, the wallet must contain enough of the relevant cryptocurrency — for example, ether (ETH) if the person is buying a token on the Ethereum blockchain.
With a little technical know-how, it is also possible to make, or “mint”, your own NFT.
Ultimately, NFTs are digital contracts, with certain rules embedded such as the number of copies available for sale.