NFT Flashcards
Define fungible.
Interchangeable and uniform; one unit is equivalent to another (e.g., USD, BTC).
Define non-fungible.
Unique and not mutually substitutable; each item has distinct value or properties.
What is an NFT?
A blockchain-based token that uniquely represents ownership of a specific digital or physical asset.
Which Ethereum standard is used for NFTs?
ERC-721 (and ERC-1155 for multi-token support).
Does owning an NFT automatically grant copyright?
No—ownership of the token does not transfer copyright unless explicitly included.
Why is off-chain storage a risk for NFTs?
If the external asset link breaks or server fails, the NFT loses its underlying media.
Name two common concerns over NFTs.
IP mismatch; off-chain link risk; plagiarism; high fees on low-value sales.
What does provenance refer to in NFTs?
Immutable record of creator and ownership history on the blockchain.
What fee issue can hurt artists on NFT platforms?
Paying more in gas + platform commissions than the sale price on low-value drops.
Name a leading NFT marketplace.
OpenSea (others: Rarible, SuperRare).
