An is a unique digital file (a “token”), created through cryptographic computer code. It is recorded and stored on a , where the identity of its owner (represented by a digital wallet) and all subsequent transfers of ownership are permanently registered.
When an NFT is created (or “minted”), it receives a unique digital ID on the , which is like a fingerprint for the token. What the buyer of the NFT receives is not the artwork itself, but the token and its attached . The metadata links the token to the work, and includes whatever information was attached to it when it was created—such as the title, artist, ownership details, or the rights assigned.
An NFT can function as evidence of and of a physical object (such as a painting or sculpture), or of intellectual property rights—but only where its documentation expressly provides for this. For example, a sculptor might sell a physical bronze piece together with an NFT that serves as a digital record of ownership—not a reproduction of the work—certifying the buyer as its registered owner and tracking its resale history (sometimes called a "phygital" sale). Unless the sale agreement says so separately, the buyer still does not acquire the copyright to reproduce the sculpture.
The NFT itself is not a . The blockchain guarantees that the NFT exists and that it has not been altered—but, importantly, this does not guarantee the truth of the NFT’s contents. It is therefore critical to ensure that the NFT is issued by a verified source and that it is linked to proper documentation that clearly states the artist’s name, title, year, number of editions, and other key details.
When issued by a verified source and backed by proper documentation, an NFT can serve as a meaningful record of and , but the legal weight of NFTs is still developing.
For more information about this, explore our page on Certificates of Authenticity (COAs).
Buying an NFT ≠ Buying the Copyright
Buying an NFT does not mean buying the copyright; it does not automatically give its owner the right to reproduce, distribute, or publicly display the work. Whether such rights are included depends entirely on the accompanying contract. Without one, the buyer owns only the token, not the rights to the associated work.
In many cases, owning an NFT is much like owning a signed, limited-edition print: you own a scarce and authenticated item, but not the copyright to reproduce it. There is one key difference, though. A print puts a physical copy of the work in your hands, while an NFT is usually a digital token that points to the work rather than embodying it.
Other Uses of NFTs
NFTs can be used to track resale and provenance. Because every transfer is recorded on the blockchain, an NFT can show a work’s ownership history from the moment it was minted—similar to a provenance record that traces a physical artwork through its successive owners. NFTs can also be programmed to pay the artist a royalty on future sales; however, this still requires the marketplace to enforce it, and it is not guaranteed by law.
Ask yourself: If someone buys my NFT, what exactly are they allowed to do with it, and what remains mine?
Image credit: CrazyDark Queen