What Are NFTs?

A non-fungible token NFT

An NFT is a non-fungible token. Non-fungible means unique; one-of-a-kind; not mutually interchangeable. A token can be anything digital (music, videos, tweets, etc.), but most of the headline-grabbing, big ticket NFTs are digital representations of art. A unit of currency, such as the U.S. dollar or a Bitcoin is fungible – you can trade a dollar for another dollar, or a Bitcoin for another Bitcoin, and get something virtually indistinguishable from your original. In contrast, NFTs are unique – an individual piece of art can be a singular NFT, or it can be one of many distinctly numbered copies.  

Most NFTs are created or “minted” on the Ethereum cryptocurrency blockchain, though many other blockchains are implementing their own versions of NFTs. There are various online marketplaces that have popped up around NFTs. Popular marketplaces include OpenSea, NBA Top Shot, Sorare, and Nifty Gateway.

What Can I Do with NFTs?

If you’re an artist, you can make and sell NFTs of your work around the world. There are features that you can enable that will pay you a percentage of the sale every time your NFT is sold or changes hands. This feature benefits artists whose work may skyrocket in popularity (and value) long after the original sale. 

If you’re a consumer, you can buy your favorite artists’ NFTs to financially support them. NFTs usually come with basic ownership and usage rights, such as being able to repost the image. However, it is important to note that the artist can still retain copyright and reproduction rights. You can hold onto your NFTs forever or hold them as temporary investments and sell them later.

Are There Any Practical Uses for NFTs?

There have been some attempts to connect NFTs to real-world objects. For example, Nike recently patented a method, called CryptoKicks, to verify sneakers’ authenticity using an NFT platform. There are games that allow you to use NFTs as items – think outfits, weapons, even plots of land.

NFTs run on energy-demanding blockchains, so there’s a very real possibility that the industry will be stifled by environmental concerns. Other long-term concerns include deteriorating image quality, incompatible file formats, inaccessible websites, and of course, forgotten passwords.

EPGD Business Law is located in beautiful Coral Gables. Call us at (786) 837-6787, or contact us through the website to schedule a consultation.

*Disclaimer: this blog post is not intended to be legal advice. We highly recommend speaking to an attorney if you have any legal concerns. Contacting us through our website does not establish an attorney-client relationship.*

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Silvino Diaz

Silvino E. Diaz’s practice ranges from Civil and Commercial Litigation to Entertainment and Intellectual Property Law. Silvino has earned a reputation as one of Puerto Rico’s foremost advocates for independent musicians and artists. As a result of his sustained commitment to creative industries, he was named Professor of Intellectual Property Law at Atlantic University College (Guaynabo, PR) – the Caribbean’s leading digital arts institution – where he spearheaded the “Introduction to IP” course for both the graduate and undergraduate programs, and was appointed by the Office of the President to develop an Intellectual Property graduate curriculum, where he served until moving to Miami in 2017. He is the founder of the service known as Starving Artists, where he offers innovative business and legal counsel for artists and creatives.


*The following comments are not intended to be treated as legal advice. The answer to your question is limited to the basic facts presented. Additional details may heavily alter our assessment and change the answer provided. For a more thorough review of your question please contact our office for a consultation.



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