This section is divided into two parts.
If you're unsure what cryptocurrency and NFTs actually are - or want a clear explanation to share with someone from a less technical background - we recommend starting here. It's a concise, plain-language overview.
For those looking to dive deeper, this part offers a more detailed understanding of NFTs, with a particular focus on how Sapiens Masterpieces NFTs are issued and function on the XRP Ledger.
What is it actually
Cryptocurrency is just records in a database. We call these records transactions. If you add up all the transactions associated with a certain address (which usually represents a person), you get how much crypto they have - like 1, or 3,471, or 0.231. So far so good.
What is so special about it
Three things, all to do with the fact that this is a special kind of database. We refer to such a database as a blockchain. You will see why just below.
Why is this a particularly good thing
We currently pay significant costs for auditing systems after the relevant data entered into them. With blockchain, audit happens at the same time as data entering the system - making it much cheaper and more efficient.
NFTs (Non-Fungible Tokens), like cryptocurrencies, are records in a database - and that database is a blockchain. This is where their similarity ends, and the key difference between them lies in the word "Non-Fungible" in “Non-Fungible Token.” Let's unpack this.
This means that some things are fungible - and the cryptocurrency on a blockchain is exactly that. One unit of the cryptocurrency is the same as any other unit of the same kind. Just like with money. If you ask me for two dollars, I can hand you any two dollars from my wallet. You don’t care which specific ones you get. That’s what it means to be fungible: interchangeable, with no unique identity. Cryptocurrencies and money are both clear examples of fungible things.
NFTs, on the other hand, are non-fungible. That means one is not the same as another - each one is distinct. This is just like real-world assets. A car is not the same as a house, and a house is not the same as a share in a company. Each item has its own features, condition, and value. That’s what makes it non-fungible - you can’t just swap one for another as if they were identical.
But even though these items are non-fungible, they can still be valued and exchanged using something that is fungible - money. This is exactly why we no longer need to barter goods. I don’t need to find someone who has two sacks of grain and wants some raw wool. I can sell the wool for money, and then use that money to buy whatever I need. NFTs work the same way: they’re unique, but they can still be priced, bought, and sold using fungible currency.
Sapiens Masterpieces NFTs are immutable records on the XRP Ledger (XRPL), serving as proof of ownership of a specific address. However, this address is not a typical web address - it’s a content address, which is a string of letters and numbers that is unique to the exact digital file it represents.
For example, for the Mona Lisa, the content address is "QmPyqmffL7TzKmtLTxRfAAXNPp47hNLPKsRnvyhS7YBYJX". For a user friendly display of all the information that lives here, have a look on Bithomp, but you can inspect the raw data itself at that exact address. That is not user-friendly though, its the raw JSON file.
Every digital file is ultimately just a sequence of zeros and ones. The content address above is a compact, 46-character hash derived from that exact sequence - no matter whether the file is a few bytes or several gigabytes. This approach is not only mathematically sound but highly efficient for computers.
Think of it like calling someone not by their phone number, but by an ID generated from their DNA, like the one above (but you wouldn't have to remember it!). You would press "call this content address" and their phone would start ringing. That ID is unique to their person and works the same every time. Similarly, this content address is uniquely tied to the digital file’s binary structure. When someone accesses the content address, they can retrieve the exact file it represents - via the InterPlanetary File System (IPFS), a decentralized protocol for hosting digital files.
At the content address like the above, you'll find the NFT metadata - including the NFT’s name, artist, description, issuer, and the content address of the associated image . Like the metadata itself, the image is also stored and retrievable via IPFS, ensuring both authenticity and permanence without relying on any central server.
As of June 2025, all NFT content is pinned on the IPFS via Filebase, Pinata, and dedicated always-on servers to ensure ongoing availability. While maintaining appropriate pinning is ultimately the responsibility of the NFT owner, these measures provide a robust foundation for content persistence.
Should any NFT content be removed from IPFS due to insufficient pinning (i.e. garbage collection), it can be fully restored, provided the original digital assets - namely The NFT Metadata and The Digital Image - are securely retained. It is therefore strongly recommended that NFT holders safeguard these digital assets as a precautionary measure, in addition to ensuring that the file is pinned by an always-on server.