Understanding NFT ownership
Where NFTs differ from traditional assets is in the transparency of the transaction and ownership. Whenever you purchase a non-fungible token, every single detail of the transaction is stored permanently on the blockchain. This includes the buyer, seller, date, time, purchase price, and gas fee where applicable.
This is why they are called “non-fungible” tokens. Non-fungible means that something is unique and can’t be replicated or replaced with something else. It’s a true one of a kind asset in which the entire transaction history follows the token wherever it goes indefinitely.
Some people argue that the fact that you can see who previously held a token adds additional value. Imagine if you purchased an NFT from your favorite artist, sports player, or someone you truly admire and had proof that they actually possessed the asset at one point in time. Now that is cool.
Before NFTs and blockchain technology, proving that someone previously owned something was near impossible without personally witnessing the transaction yourself. Now with this amazing technology, you can guarantee what you are buying is true and authentic.
Perhaps one of the most magnificent features of owning a non-fungible asset is the ability to re-sell your token on a secondary marketplace. Selling your NFT usually means you are also selling any perks that go along with the NFT.
So, if your NFT contains certain assets such as utility or IP, you may also forge over those rights to the new owner upon purchase, depending on the original sale terms. If this is the case, this bestows more value for the buyer and a greater likelihood that your digital asset will sell if that is what you choose to do with it.
Ultimately, owning a non-fungible token allows you to prove ownership of your assets and provides transparency for everyone who is involved in the agreement. NFTs may also carry extra perks and benefits aside from the token itself, granting the consumer even more usefulness and exclusivity than ever before.
