Understanding NFTs: They’re Just Digital Deeds

Every time a new technology breaks into the mainstream, there’s a reflexive panic from people who don’t understand it — or worse, from those who do and want to keep it mysterious. Let’s cut through the noise: NFTs aren’t weird, confusing, or even that new. They’re just digital deeds. If you’ve ever bought real estate or rented a place, you’ve already dealt with their analog equivalent. Here’s how NFTs work, why they matter, and how they’re already transforming industries like global trade — all explained through the lens of something familiar: property deeds.

A Deed Is the Original NFT

A real estate deed is a unique document that proves you own a specific piece of land. It doesn’t contain the land itself or display it. It represents your legal right to own and use that land under a specific set of conditions.

Sound familiar? That’s exactly what a non-fungible token (NFT) does. It’s a unique digital token tied to a specific asset — digital or physical. It doesn’t contain the asset itself (like an image or file); it defines and proves ownership. Period.

Both deeds and NFTs live on a ledger:

• Deeds are recorded by your local county government.
• NFTs are recorded on a blockchain.

Same concept, different technology.

You’re Not Buying the Asset — You’re Buying the Rights

This is where people often get confused. When I bought my first house, I walked into the title office thinking, “I’m about to officially own a house.” Then I signed a stack of papers that had nothing to do with the physical property. Instead, they outlined utility easements, fence restrictions, and even covenants about paint colors I didn’t know existed. That’s when it clicked: you don’t buy the house itself — you buy the rules around the house. The deed represents those rights.

NFTs work the same way. You’re not buying the image, video, or file. You’re buying the unique token that governs what you can do with it — sell it, verify it, or use it as access to something else. It’s the same mental model, just digitized.

It’s Not About the Art, It’s About the Record

People often mock NFTs, saying, “You can just right-click and save the image.” Sure, just like you can photocopy a real estate deed. The copy doesn’t give you the rights. The record does. And in both cases, that record is publicly verifiable:

• If your name is on the deed in the county records, that land is legally yours.
• If your wallet address is tied to an NFT on the blockchain, you own that token.

Ownership is about proof, not pixels.

A Simple Comparison

Technology Isn’t Magic — It’s Math and Law

We’ve been conditioned to trust old systems just because they’re familiar. But a deed in a dusty filing cabinet isn’t inherently more “real” than a cryptographically-secured NFT on a globally accessible blockchain. In fact, NFTs are often harder to forge, lose, or manipulate.

The next time someone calls NFTs a scam, ask them: “Have you ever owned a house?” If they say yes, they’ve already bought into the concept of a deed — they just didn’t know it was called an NFT.

NFTs Are Already Transforming Global Trade

If you think NFTs are just theoretical, think again. They’re already being used in international shipping. In 2023, Maersk, one of the world’s largest shipping companies, explored NFT-based bills of lading to track and transfer ownership of shipping containers. These NFTs act like digital deeds, instantly and securely representing the cargo, its owner, and its destination. No more passing around paper documents or emailing PDFs that can be forged or delayed.

This isn’t a gimmick — it’s removing friction from a trillion-dollar global supply chain. NFTs are being used to move bananas, oil, and electronics across oceans with less fraud and faster delivery. It’s not about the asset itself; it’s about the proof of ownership.

More Examples of NFTs You’re Familiar With

NFTs extend beyond art or collectibles. Here are a few familiar concepts that align with NFTs:

• Content Credentials: Similar to a certificate of authenticity for artwork, NFTs can verify the origin and ownership of digital content.
• Event Tickets: Like a ticket stub that proves your right to attend a concert, NFTs can serve as secure, verifiable access passes.
• Membership Passes: Think of a country club membership card — an NFT can act as a digital pass for exclusive communities or services.

Why NFTs Matter for Your Business

For Shopify merchants, NFTs open up new opportunities:

• Digital Collectibles: Sell unique digital products with verifiable ownership, like exclusive designs or virtual goods.
• Loyalty Programs: Use NFTs as membership tokens for VIP customers, granting access to special perks or events.
• Supply Chain Transparency: Like Maersk, use NFTs to track products, ensuring authenticity and reducing fraud in your supply chain.
• Creative Monetization: Artists and creators can sell tokenized versions of their work, ensuring they retain control and earn royalties on resales.

Final Thoughts

NFTs aren’t a mystery or a fad — they’re a digital evolution of a concept as old as property ownership. By understanding them as digital deeds, you can see their potential to transform how we prove ownership, verify authenticity, and streamline global trade. Whether you’re a Shopify merchant looking to innovate or just curious about the tech, NFTs are worth exploring. They’re not just about art — they’re about proof, and proof is power.