NFT Introduction to NFT Art 4 — Questions and Answers
Question 1: What does IPFS stand for in NFT storage?
- International Platform for File Security
- InterPlanetary File System (Correct answer)
- Integrated Protocol for File Sharing
- Internet Privacy File Standard
Correct answer: InterPlanetary File System
IPFS (InterPlanetary File System) is a decentralized storage protocol commonly used to store NFT artwork files off-chain in a distributed, content-addressed way.
Question 2: What is 'royalty' in the context of NFT art sales?
- A one-time payment made at initial mint
- A percentage of secondary sales automatically paid to the original creator (Correct answer)
- A fee charged by the marketplace for listing
- A government tax on digital art transactions
Correct answer: A percentage of secondary sales automatically paid to the original creator
NFT royalties are programmed into the smart contract so the original artist automatically receives a percentage (typically 5-10%) each time their work is resold.
Question 3: What is a 'rug pull' in the NFT art world?
- A legitimate exit strategy for NFT projects
- When creators abandon a project after collecting funds, leaving buyers with worthless NFTs (Correct answer)
- A competitive bidding tactic at NFT auctions
- When an artist destroys their physical artwork after minting
Correct answer: When creators abandon a project after collecting funds, leaving buyers with worthless NFTs
A rug pull is a scam where NFT project creators disappear after raising funds from buyers, leaving investors with NFTs that have no value or promised utility.
Question 4: Which wallet is most widely used for interacting with Ethereum-based NFT marketplaces?
- PayPal
- MetaMask (Correct answer)
- Venmo
- Coinbase Wallet only
Correct answer: MetaMask
MetaMask is the most popular browser extension and mobile wallet for connecting to Ethereum-based NFT platforms like OpenSea, Foundation, and others.
Question 5: What is 'phygital' art in the NFT space?
- Art created using physical brushes scanned digitally
- A combination of physical artwork paired with a corresponding NFT (Correct answer)
- Art displayed only in physical galleries with QR codes
- Digital art that mimics physical textures
Correct answer: A combination of physical artwork paired with a corresponding NFT
Phygital art bridges the physical and digital worlds by linking a tangible artwork (like a print or sculpture) with an NFT that authenticates and tracks its ownership.
Question 6: What role does a 'smart contract' play when an NFT artwork is sold on the secondary market?
- It physically transfers the digital file to the buyer's device
- It automatically executes the sale terms, transferring ownership and distributing royalties (Correct answer)
- It verifies the buyer's identity with government ID
- It stores the artwork in a secure vault
Correct answer: It automatically executes the sale terms, transferring ownership and distributing royalties
Smart contracts self-execute when conditions are met, handling ownership transfer, royalty distribution to the creator, and marketplace fees without a middleman.
Question 7: What is meant by an NFT being 'burned'?
- Selling it at a very low price in a fire sale
- Permanently destroying an NFT by sending it to an unusable wallet address (Correct answer)
- Overprinting physical copies of the NFT artwork
- Copying an NFT to create a duplicate
Correct answer: Permanently destroying an NFT by sending it to an unusable wallet address
Burning an NFT means sending it to a null or dead wallet address from which it can never be retrieved, permanently removing it from circulation.
NFT Introduction to NFT Art 4
What does IPFS stand for in NFT storage?