How is ownership of an NFT established?

Ownership of a non-fungible token (NFT) is established through the utilization of blockchain technology. Blockchain is a decentralized and transparent digital ledger that records the ownership history and transactions of NFTs. Each NFT is embedded with a unique digital signature, known as a cryptographic hash. Ownership of the NFT is tied to the owner's blockchain address, which is verified and authenticated by the blockchain network. This provides an immutable proof of ownership, preventing counterfeiting or tampering of the NFT. The ownership history is stored on the blockchain, ensuring that it can be easily traced and verified by anyone who wants to verify the rightful owner of an NFT. Overall, the decentralized nature and cryptographic features of blockchain technology enable the establishment of ownership for NFTs with a high degree of security and transparency.

This mind map was published on 10 September 2023 and has been viewed 116 times.