NFT Characteristics

NFT has specific characteritics:

Unique identifier

Each minted token has a unique identifier.

They cannot be swapped with other tokens in 1:1 ratio. For example, 1 ETH is identical to another ETH. This is not the case with NFT.

Each token has an owner, and it is easy to verify this information.

They live on Ethereum and can be bought and sold on any Etherium-based NFT market.

In other words, if you have NFT: you can easily prove your ownership. No one can manipulate it in any way.

You can sell it and, in some cases, receive resale copyright from the original creator.

Or, you can hold on to it forever, rest assure that your assets are protected by your wallet on Ethereum.

If you create NFT:

You can easily prove that you are a creator.

You decide on your NFT scarcity.

You earn copyrights fee every time you sell.

You can sell it on any NFT market or peer-to-peer market. You are independent from any platform and also without middleman interference.

Scarcity

The creator of an NFT gets to decide the scarcity of their asset.

For example, consider a ticket to a sporting event. Just as an organizer of an event can choose how many tickets to sell, the creator of an NFT can decide how many replicas exist. Sometimes these are exact replicas, such as 5000 General Admission tickets. Sometimes several are minted that are very similar, but each slightly different, such as a ticket with an assigned seat. In another case, the creator may want to create an NFT where only one is minted as a special rare collectible.

In these cases, each NFT would still have a unique identifier (like a bar code on a traditional "ticket"), with only one owner. The intended scarcity of the NFT matters, and is up to the creator. A creator may intend to make each NFT completely unique to create scarcity, or have reasons to produce several thousand replicas. Remember, this information is all public.

Royalties

Some NFTs automatically pay royalties to their creators on sale. This is still a developing concept, but it is one of the most powerful concept. Every time an NFT is sold, the original owner of EulerBeats Originals receives an 8% royalty. Some platforms, such as Foundation and Zora, support charging royalties from their artists. This is completely automatic, so creators can better earn royalties because their works are sold between people. Currently, calculating royalties is very manual and lacks of accuracy--many creators are not receive the deserved compensation. If your NFT has included royalties, you might cannot enter into this NFT feast.

Reproducibility

For the same artwork, the artist can create multiple NFTs for airdrop marketing or sell copies to more collectors. The ERC1155 standard that was born later can better meet the needs of NFT art reproduction.

Programmability

Artists can own the shares of paintings through customized smart contracts, and receive a fixed proportion of the premium for each future transaction or auction. At the same time, programmability is also a technique used in the creation of encrypted artworks.