LegiFiscal non-fungible NFT token

NFT (Non Fungible Token) or in French, (Non-fungible token).

Definition¶

Non-fungible tokens, or NFTs, are digital content linked to the blockchain.

The NFT is considered a new investment tool on the digital art market, egn as a representation of a digital work. It is of interest to collectors, digital art enthusiasts, video games and investors.

Definition

The NFT is a non-fungible token

They represents a well both physical and digital registered on blockchain. Him thisconfirm authenticity of this good and its own not interchangeable.

In this sense it is unique. NFTs are not interchangeable, no two are alike.

The NFT is considered to be a token intended to be non-fungible and unique.

One token¶

The Monetary and Financial Code, in its article L.552-2, cites the definition.

Article L552-2
Establishing LAW n ° 2019-486 of 22 May 2019 – art. 85

“For the purposes of this chapter, a token means any intangible asset that represents, in digital form, one or more rights that can be issued, registered, stored or transferred by means of a shared electronic recorder that allows the identification, directly or indirectly , the owner of that property. “

Non fungible¶

Fungible is said of a What interchangeable against a thing of the same value, of the same nature or of the same quantity.

NOTwe fungible It’s a thing which cannot be replaced from something of the same value, of the same nature or of the same quantity.

An NFT has a cryptographic connection with the support of a unique, non-fungible and unique work. Its programming code is unique on the blockchain.

NFT is a digital token that represents a single object, registered on a blockchain that allows to identify its owner and legally representative of its owner.

Activities represented by NFT ¶

  • digital artwork
  • physical works of art
  • tweet
  • Collections
  • sporting moments
  • GIF
  • Virtual collectible cards
  • Short videos or author music clips
  • Entrance tickets to a private showroom of a luxury brand,
  • Be featured in video games

For example, Twitter co-founder Jack Dorsey sold the first tweet. The price of this NFT is $ 2.9 million.

When an NFT is traded, it is not the underlying artwork that is traded, but it is the certificate of authenticity of the work which is the subject of the transaction.

Forinvestor this takes the form of receiving a digital file representing the certificate of authenticity of the underlying asset.

Getting to NFT: the tokenization process.

Tokenization is the process of replacing sensitive data with an equivalent element (Token).

It is registering on a token a resource or a property title on a blockchain with the rights attached to it.

The asset represented by the token, also called the underlying asset, can exist in both digital and physical form.

In this way, the token has no meaning outside of its operating system.

Here for an NFT this corresponds to the registration of a property title or a certificate of authenticity of a digital work on a non-fungible token issued on a blockchain.

Work¶

The NFT represents the certificate of authenticity or ownership of a work on the blockchain, in the form of a cryptographic token.

The certificate of authenticity is integrated into the NFT, it allows the interested investor to verify its authenticity.

NFTs can be bought and sold like other types of assets, their value is determined by supply and demand.

Buyers are willing to pay based on scarcity and demand. There is no certainty of future earnings.

Buy or sell an NFT ¶

Choose the market and platform to buy on.

A digital wallet will be opened to store the Net

And take into consideration the cryptocurrency needed for the transaction. You will need it to complete the sale. Most transactions take place with Ethereum

Transaction fees

Fees: Some exchanges apply “gas” fees, corresponding to the energy needed to carry out the transaction on the blockchain, to the Ethereum conversion costs, to the sales and purchase commissions.

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