NFTs
An NFT is an entry on a blockchain that points to something. What you legally get with the purchase depends entirely on the specific contract, and is often less than buyers assume.
An NFT is a unique entry on a blockchain. It proves that entry belongs to you. What it doesn't automatically prove is that the image it points to belongs to you.
In many cases, the image file doesn't sit on the blockchain at all, it sits on a server. If that server disappears, the entry remains and points at nothing.
Legally: copyright doesn't automatically transfer with it. What you get is stated in the specific terms of use, and these vary enormously. Without having read those terms, you don't know what you bought.
Economically, the same applies as with collectibles, just with even lower tradability: the price depends purely on demand, trading costs are substantial, and published return statistics show the sales, not the unsellable holdings.
Technically, an NFT usually points via an address to metadata, which in turn points to the actual file. If that sits on a conventional server, persistence depends on that server staying operational. Content-addressed storage systems mitigate this, but only guarantee availability as long as someone keeps hosting the data.
Legally, acquiring a token needs to be separated from acquiring copyright usage rights. Without explicit grant of rights, the buyer acquires no exploitation rights to the underlying work. The commonly used license terms vary considerably in scope and transferability.
On the market side, very low liquidity, high trading costs, and pronounced concentration of volume in a few collections characterize the space. Evaluating published price series is subject to the same selection bias as other collectible markets, since unsold items never appear in any statistic.
Summary
- The token is the entry, not necessarily the work.
- Copyright doesn't automatically transfer with it.
- Price statistics only show the objects that sold.
Did you get it?
What do you technically own with an NFT?
An entry on the blockchain pointing to metadata, which in turn points to a file.
Do you acquire copyright with the purchase?
Not automatically. What matters is the specific license terms.
Why are published returns distorted?
Because unsellable items never show up in the statistics.
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