Questions On NFTs Answered

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NFTs are unquestionably the most popular technology issue these days. Since this technology allows non-fungible assets to be transferred digitally, artists, memorabilia collectors, and others have embraced it to create innovative business models and marketplaces for NFTs such as Jungle NFT Marketplace. 

If you haven't yet grasped the notion of NFTs, check out Jungle, an NFT Marketplace where creators and collectors can meet to discover, buy, and sell unique and innovative digital art and crypto collectibles.

Since the NFT domain is relatively new, we've been hearing a lot of questions about it. Here are the Top questions and doubts in the NFT domain.

  • Can NFTs be used as an investment?
  • Do artists have any sort of copyright over stolen art that has been converted to NFT? 
  • Does Sleepminting on NFT pose a security threat?
  • How do you ensure that a physical asset and the associated NFT remain connected?
  • Isn't it a problem that minting NFT is so expensive for small digital artists?

Can NFTs be used as an investment?

Even though NFTs might be viewed as an investment opportunity, the legal elements of NFT investments have yet to be specified in the majority of jurisdictions. As a result, limits and restrictions in purchasing NFTs might be expected based on the investor's country.

How secure is an ERC721 NFT?

ERC standards are open source, and their security is audited by various organizations and the global developer community. The safety of dApps built with ERC721 NFT is determined by the smart contract used to mint and transact the token. We recommend choosing a highly skilled and competent blockchain development company to create your smart contract. Also, have an impartial organization audit the smart contract.

Do artists have any sort of copyright over stolen art that has been converted to NFT? 

 

No, technically. The original artist will not receive any NFT rights. However, from a legal sense, if the artist can demonstrate that the artwork was stolen from them and used to mint NFT, law enforcement can transfer NFT ownership to the artist. This, however, is dependent on the norms and regulations of each jurisdiction. In an ideal world, the NFT designer would obtain the artist's permission and agree on the terms and circumstances of a contract.

Does Sleepminting on NFT pose a security threat?

Sleepminting is a fraud in which a hacker modifies an ERC721 contract in order to mint tokens in other accounts. The threat posed by sleep minting in an NFT marketplace may be mitigated by introducing logic to verify the origin of an NFT asset before it is made available for listing in the marketplace. To identify a sleep minted NFT, the buyer must verify that both the mint transaction's sender and the NFT's sender match the proper address of the NFT owner.

How do you ensure that a physical asset and the associated NFT remain connected?

This can be accomplished by attaching extra tags or trackers to the physical object. Tags equipped with bank-grade encryption, for example, can provide end-to-end authentication for items. When scanned with a smartphone or special scanner, these tags may connect to the linked NFT and get information from the blockchain to validate its legitimacy.

Isn't it a problem that minting NFT is so expensive for small digital artists?

NFTs minted on the Ethereum blockchain currently have a gas fee of around $40. This is not feasible for low-value digital arts. An alternative option is to mint NFTs on other platforms that are less expensive, such as Jungle.

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