We plan on launching a series of NFT explainers in the near future. For the time being, we've compiled a list of the questions about NFTs that we hear most often.
What is an NFT?
An NFT (or non-fungible token) is a unique, immutable (cannot be changed) digital asset. This can be an image, video, audio, or any digital file. The ownership of an NFT is recorded on a blockchain’s ledger to ensure that its ownership is publicly known.
What is the blockchain?
In short, a blockchain is a shared, immutable database that stores a record of every transaction made on the network. It can record information about cryptocurrency transactions, smart contracts, or NFT ownership. Because blockchains are distributed between many nodes on a network, the data stored on them is impossible to change once it has consensus.
What is a crypto wallet?
A crypto wallet stores your private keys and ensures you are the only person who can authorize crypto transactions. The ownership of your holdings live on the blockchain – a crypto wallet just makes it easier to access those holdings.
Are NFTs bad for the environment?
NFTs can be bad for the environment, depending on how they are written to the blockchain. The key factor in the environmental impact of an NFT is the amount of electricity needed to add a new block to the blockchain.
Enshrine uses a technique called Layer 2 Rollups in order to minimize the environmental impact of creating an NFT while remaining on the reliable Ethereum network.
We've committed to offsetting the carbon from NFT minted on our platform. Learn more about our commitment to carbon-neutral NFT minting in our blog post!
How do I know my NFT is secure?
The ownership of any NFT you purchase on Enshrine is recorded on the Ethereum blockchain and belongs solely to you. The NFT can only be sold or transferred with your permission. We highly encourage that you enable two-factor authentication on your account as an extra layer of security.
What do I actually own when I purchase an NFT?
Each NFT offered on Enshrine is a unique digital asset that is completely unique, even if the content is offered as an edition. When you make a purchase on Enshrine, you own a specific NFT that you can choose to keep in your wallet or sell to someone else.
Purchasing an NFT from Enshrine does not mean that you own the underlying copyright of the content — that still belongs to the content creator.