NFTs 101
Two days ago, someone bought a Lebron James dunk for $208,000.
This is just one recent purchase in the booming NFT market.
But what are NFTs and how do they work?
Here’s your guide to NFTs!
Two days ago, someone bought a Lebron James dunk for $208,000.
This is just one recent purchase in the booming NFT market.
But what are NFTs and how do they work?
Here’s your guide to NFTs!
1/ First, a few definitions.
Blockchain: A digital record of transactions that can't be changed by a central entity
Non Fungible: Indivisible and unique
Token: An asset that is recorded on a blockchain
Blockchain: A digital record of transactions that can't be changed by a central entity
Non Fungible: Indivisible and unique
Token: An asset that is recorded on a blockchain
2/ Non-fungible tokens (NFTs) are unique, digital assets that are owned, bought, sold, and traded on a blockchain.
Simply put, they’re digital collectibles.
Many people believe NFTs will completely change the way we share and consume everything online.
I agree with them.
Simply put, they’re digital collectibles.
Many people believe NFTs will completely change the way we share and consume everything online.
I agree with them.
3/ Right now, NFTs primarily exist in the world of art and gaming.
It’s about to get a whole lot crazier though.
Here’s what Mark Cuban has to say:
“What happens when everything is digital, and literally anything digital can be a store of value? "
It’s about to get a whole lot crazier though.
Here’s what Mark Cuban has to say:
“What happens when everything is digital, and literally anything digital can be a store of value? "
4/ Our world is digital.
@bobbyhundreds:
"For kids today, their realities and social scenes exist within the digital framework of video games.
I could hand my kids $100 and they wouldn’t know what to do.
Instead, they’d ask, 'Daddy, can you convert that to Fortnite V-bucks?'"
@bobbyhundreds:
"For kids today, their realities and social scenes exist within the digital framework of video games.
I could hand my kids $100 and they wouldn’t know what to do.
Instead, they’d ask, 'Daddy, can you convert that to Fortnite V-bucks?'"
5/ Epic Games made $2.4 billion selling costumes in Fortnite.
But try selling that costume on eBay and you’ll discover the difficulty of moving digital assets from one person to another.
As @dfinzer put it, "We have tons of digital stuff, we’ve just never really owned it."
But try selling that costume on eBay and you’ll discover the difficulty of moving digital assets from one person to another.
As @dfinzer put it, "We have tons of digital stuff, we’ve just never really owned it."
6/ The collectibles market is already massive.
It's about to get exponentially bigger.
Pre-blockchain: Collectibles consist of trading cards, art, cars, and stamps.
Post-blockchain: Anything can be a collectible
It's about to get exponentially bigger.
Pre-blockchain: Collectibles consist of trading cards, art, cars, and stamps.
Post-blockchain: Anything can be a collectible
7/ NFTs improve upon four main areas of collectibles.
1. Interoperability – NFTs allow collectibles to move across ecosystems
2. Liquidity – NFTs create liquid markets for previously illiquid asset classes
1. Interoperability – NFTs allow collectibles to move across ecosystems
2. Liquidity – NFTs create liquid markets for previously illiquid asset classes
8/ Continued...
3. Tradability – NFTs represent a transition from a closed economy to an open, free-market economy
4. Provable scarcity – Developers can enforce that only a specific number of a rare item can be created
3. Tradability – NFTs represent a transition from a closed economy to an open, free-market economy
4. Provable scarcity – Developers can enforce that only a specific number of a rare item can be created
9/ This is what @mcuban calls the biggest game changer of it all...
NFTs allow artists to earn a percentage every time their art sells on the secondary market.
Musicians and actors earn royalties every time people listen to or watch their work.
Why shouldn't artists get this?
NFTs allow artists to earn a percentage every time their art sells on the secondary market.
Musicians and actors earn royalties every time people listen to or watch their work.
Why shouldn't artists get this?
10/ This wouldn't be a proper NFT thread without addressing: “If I can just screenshot it, why is it valuable?"
This is like saying if I can just make a copy of the Mona Lisa, why is it valuable?
I won't get into it.
Read this thread by @DCCockFoster
This is like saying if I can just make a copy of the Mona Lisa, why is it valuable?
I won't get into it.
Read this thread by @DCCockFoster
https://twitter.com/DCCockFoster/status/1278449517311012869
11/ What does the future of NFTs look like?
There will be billions of NFTs.
Every meme, dunk, moment, song, and viral tweet will get digitized and will be available to buy and sell on a liquid marketplace.
You’ll get NFTs when you go to a sports game or attend a dinner party.
There will be billions of NFTs.
Every meme, dunk, moment, song, and viral tweet will get digitized and will be available to buy and sell on a liquid marketplace.
You’ll get NFTs when you go to a sports game or attend a dinner party.
12/ Owning, holding, maintaining, grading, shipping, buying, selling, storing, and displaying a physical good is a hassle.
With digital goods, it’s seamless.
The world will soon realize this.
With digital goods, it’s seamless.
The world will soon realize this.
If you enjoyed this thread:
1. Follow me for more insights into the crypto space
2. Subscribe to our free daily newsletter
blockworks.co/newsletter/
1. Follow me for more insights into the crypto space
2. Subscribe to our free daily newsletter
blockworks.co/newsletter/
• • •
Missing some Tweet in this thread? You can try to
force a refresh
