The wallet address is your id. So essentially if I create an nft, it is forever associated with my wallet as the creator. I set a royalty amount in the smart contract and the transfer of the nft / token takes place through the contract and automatically sends the percentage of the fee to my wallet. The token does not go directly from A to B, it passes through the contract where the logic to transfer the token is implemented.
pretty much. You lose access to the wallet and don't have your private key backed up, then its gone. Most wallet providers bug you to back up your key seed and even test you to validate that you have.
