NFT (NON FUNGIBLE TOKEN)

-Dr.K.THIRUGNANASAMBANTHAN, Asst. Professor, DEPARTMENT OF MBA,

 SANKARA COLLEGE OF SCIENCE AND COMMERCE

NFT stands for NON FUNGIBLE TOKEN. It is a kind of crypto asset that records ownership of digital items.  Fungible means that can be interchanged.  Non Fungible is a one which has unique properties and which cannot be interchanged.  As NFT has unique properties it cannot be exchanged with anything like money.  It is unique in nature, it can be painting, articles etc.  This Digital token is the certificate of ownership for physical or virtual asset.

During this pandemic period, people are not allowed to do physical auction.  Many artworks have remained unsold during this period and the sale has fallen to below thirty percent. With NFT artwork can be tokenized and can be made as a digital certificate and it can be sold in NFT Market places like Opensea, Rarible, Superrare, Foundation, Atomic Market, Myth Market, Bakery Swap, Known Origin, Portion, Enjin Marketplace etc.

The NFT Market has extensive range of non-fungible tokens, including virtual world art, domain names with censorship-resistant, trading cards, collectibles and sports.

For making a NFT you need to have a crypto currency, the next step is to create a digital wallet and you need money to your wallet, then connect to any prominent NFT Platform by uploading your file and you can start auctioning and Pay the prescribed fee. The recording or ledger where that token is certified act as a proof of ownership is called a block chain.

Every NFT has an owner and the ownership can be verified publically.  The initiator can retain ownership rights over the work and they can also sell their work throughout the world. 

The legality of NFTs in India is uncertain and adding to the misperception is the belief that trading in NFT is not permitted under the Securities Contract (Regulation) Act, 1956 (“SCRA”). There is no discrete legal framework for NFTs in India.NFT in India has a long road to be accepted.