To understand the concept of an NFT first think about the last music CD you bought.
You essentially buy the CD from the artists record label. The record label, nor the artist has any idea who owns each CD.
Because that CD is a tangible item, it’s easy for you to sell to someone else once you no longer want it. You could sell it to a friend, on ebay, on Facebook and so on. But again, once you it’s sold, there is no record of who owns the CD.
So the record label puts restrictions on the use of the music, which means you can only listen to it.
Now if this CD was sold as a digital version and as an NFT, we can record who actually owns it.
Everytime the album is sold, the transaction is recorded in a blockchain ledger.
The record label, or even the artist if they were to boycott the label, would always know who owns the album.
Given the ownship can be tracked, the label or artist might allow whoever owns the album to remix it or use it however they like.
They might also put conditions on the resale, such as the artist getting 20% of every future ‘on sale’ of the album.
