What are the processes involved in managing ownership of an NFT?

Managing ownership of a Non-Fungible Token (NFT) involves a few key processes. First, when an NFT is minted or created, an ownership contract is established on a blockchain platform like Ethereum, which acts as a decentralized ledger. This contract records the original owner's address and verifies their possession of the unique digital asset. To transfer ownership, the current owner initiates a transaction that updates the ownership record to the recipient's address, ensuring a transparent and immutable transfer of ownership. Each transfer is recorded on the blockchain, creating a clear ownership history and preventing fraud. Additionally, NFT marketplaces play a crucial role in managing ownership by providing a platform for buying, selling, and trading NFTs securely, often through escrow services that protect the interests of both parties. Overall, the processes involved in managing ownership of an NFT are designed to establish and ensure the authenticity, traceability, and integrity of ownership in the rapidly evolving world of digital assets.

This mind map was published on 10 September 2023 and has been viewed 105 times.