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Primer on Non-fungible Tokens NFTs

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Primer on Non-fungible Tokens NFTs ( primer-non-fungible-tokens-nfts )

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The current transfer of property ownership is extremely labour-intensive and expensive. By tokenising property rights, NFTs can make property easier to trade and manage. NFTs are a new way to register ownership into a ledger, like entering a line into an excel sheet to record who owns what. The token is a digital receipt of your ownership rights. Unlike a record that’s kept in a central place, the ledger on the Ethereum blockchain is constantly updated and encrypted on multiple computers across the world. Ownership and provenance are always immutably tracked by the blockchain. What's yours is yours, without the need for a third party to verify. In the traditional world, we’ve relied on layers of middlemen to establish trust in the transaction, exchange contracts and ensure that money changes hands. Smart contracts (code that can specify a series of actions that happen as a result of specific triggers) can be used to ensure that both parties honour their agreements, replacing the need for lawyers and trust accounts. NFTs go beyond a simple legal agreement. They also create the opportunity for new income streams - artists can attach stipulations to an NFT that ensures they get some of the proceeds every time the NFT gets resold, which allow them to benefit if their work increases in value. NFTs has the potential to completely transform markets by: • Making recording/transferring ownership more efficient and transparent • Proving the authenticity and provenance of both physical and digital items and allowing them to be traded without an intermediary • Creating new business models for creators 3

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